Gold Technical Report: Gold prices have been on declining throughout last 2 weeks but for last 3 trading sessions it has been making a DOJI formation ( open and close prices at same level) indicating some indecision and probable trend reversal in the markets. Prices have reached at 7 moths low and received a much awaited relief on Friday as the day ended with solid green candle. Next major resistance is near 200 days Exponential Moving Average @ 1892 and major support is near 1760 wich is 200 weeks EMA. The short term Stochastics Oscillator is at 16 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 37 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices are also in a falling mode parallely and desplaying both side fluctuations for last some days. The prices are making an intra day low near 20.68 and bouncing back at the close. On Friday, it jumped off smartly making a short term trend change and now trading above 10 days EMA @ 21.80. The Short term Stochastics Oscillator is at 24 and Relative Strength Index near 41.
Fundamental Report: The market is treading cautiously, as the precious metal benefits from geopolitical unrest, its upside is being checked by bullish U.S. economic data. A robust jobs report, showing a 336,000 job growth in September, outpaced market expectations and fortified the Federal Reserve’s stance on maintaining its monetary tightening cycle. This scenario, bolstered by increasing Treasury yields, dampens gold’s allure. The robust jobs data indicates a potential rate hike, thereby increasing the opportunity cost of holding gold. This notion is corroborated by a 29% likelihood of another Federal Reserve rate hike this year, according to CME FedWatch. Concurrently, holdings in SPDR Gold Trust, the largest gold-backed ETF, dipped slightly, signaling caution among investors. Considering the tug-of-war between geopolitical risks and solid economic metrics, the short-term outlook for gold is cautiously optimistic. Despite headwinds from the strong U.S. economy, geopolitical tensions are injecting enough uncertainty to offer a floor for gold prices. By balancing the impact of escalating Middle East conflicts against strong U.S. economic data, traders should brace for measured volatility in the gold market in the near term.
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