Gold Technical Report: Gold declined for third straight session yesterday. It opened at 10 days Exponential Moving Average @ 1970 and kept on sliding to post a red Maribozu candle. The prices for last 2 weeks are climbing above July High levels breaking the 2000 mark but shying away from 2010 consistently. The technical pullback last month was strong enough to cross above 50 days, 100 days and also 200 days Exponential Moving Average in a single day. On the reverse, the 10 days EMA has also crossed 200 days and 50 days EMA signifying strength. Gold had been on decline throughout earlier but started the rally with a gap up. Prices had reached at 7 moths low and received a much awaited relief. The short term Stochastics Oscillator is at 18 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 48 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also declined parallely on profit booking for third consecutive day. It posted a solid green candle on Friday as prices crossed and closed above all 10,50,100 and 200 days Exponential Moving Average in a single day. It is trying hard to hit the Oct month highs near 23.70 but faces a strong resistance above 23.00 due to consistent selling pressure. The Short term Stochastics Oscillator is at 23 and Relative Strength Index near 45.
Fundamental Report: Gold prices declined today as multiple officials of the Federal Reserve have suggested the possibility of additional rate hikes. This as the geopolitical risk premium that had been prominently factored into gold’s price is beginning to diminish. Over the last few days, multiple officials of the Federal Reserve have commented on the Fed’s current monetary policy. While the majority attempted to maintain a balanced tone, many left it open for additional rate hikes if economic data on inflation levels warrant them. The Federal Reserve is hosting a conference to celebrate the centennial of the division of research and statistics with many featured speakers including Chairman Powell. Now that the risk premium for this geopolitical event has been factored into the price, the focus has switched from concern over geopolitical risk to upcoming Federal Reserve pivots in their monetary policy. This has provided traders the opportunity to take profits.