Gold Technical Report: Gold tried to recover yesterday after declining for three straight sessions earlier. It moved towards 10 days Exponential Moving Average @ 1966 but could not cross the hurdle. 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 15 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 52 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also posted a green candle after fall of 3 consecutive days. It posted a solid green candle last week 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 30 and Relative Strength Index near 48.
Fundamental Report: Chairman of the Federal Reserve Jerome Powell has provided indications that relieved some of the pressure that was brought on yesterday by Fed officials that were perceived as bearish for gold. Although his comments did aid in gold rising in price today he continued to be ambiguous about future Fed actions. “We are not confident,” he said, that the Fed’s benchmark rate is high enough to steadily reduce inflation to its 2% target. “If it becomes appropriate” to raise rates further, “we will not hesitate to do so,” Powell added, suggesting that for now it isn’t “appropriate” to increase its benchmark rate. 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. 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.