Gold Technical Report: On Friday, Gold prices moved up to make an intraday high near 100 days Exponential Moving Average @ 1933 but slipped little in the end to close near 10 days EMA @ 1920 . Main support level is near 200 days EMA @ 1869 and immediate resistance level is near 50 days EMA @ 1945 to trade stronger. The short term Stochastics Oscillator is at 46 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 42 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver prices, on Friday crossed above 10 days EMA @ 22.89. The main support is near 200 days EMA @ 22.38 and main resistance level is near 50 Days EMA @ 23.42 to show strength. The Short term Stochastics Oscillator is at 51 and Relative Strength Index near 48.
Fundamental Report: The markets reacted with volatility, caused by confusion , thanks to the disparity in the two jobs reports released last week. On Thursday ADP released its private sector payrolls for June which came in more than twice the estimate of economists polled by the Wall Street Journal. Economists had forecast that the report would reveal that 220,000 jobs were added to private sector payrolls last month and the actual numbers showed that 497,000 jobs were added. However on Friday the Bureau of Labor Statistics (BLS) released the nonfarm payrolls report for last month. Economists polled by the Wall Street Journal had forecast that the report would show an increase of 240,000 jobs were added. However, the actual numbers came in below that at 209,000 jobs were added in June, the smallest increase since 2020. The softer employment numbers most likely will not be enough to change the resolve of the Federal Reserve as they consider raising rates at the next FOMC meeting. In addition, the rapid rise in wages adds to inflationary pressures. The lower numbers did not change market sentiment as to whether or not the Federal Reserve would implement a rate hike of ¼% at the end of the month. This may also impact jobs report did not have any strong impact on the probability that the Fed will raise rates at the FOMC meeting which will take place on July 26. According to the CME’s FedWatch tool, there is a 92.4% probability that the Fed will raise rates by ¼%. The probability of a rate hike is 91.8%, against 86.8% a week ago.