Gold Technical Report: Gold prices have been on declining throughout last 2 weeks but opened the new week with a gap up. Prices have reached at 7 moths low and received a much awaited relief. Next major resistance is near 200 days Exponential Moving Average @ 1891 and major support is near 1810 which is recent bottom from where prices picked up. The short term Stochastics Oscillator is at 32 (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: Silver prices are also trying to recover from the downfall it faced for last two weeks. The prices are making an intra day low near 20.68 and bouncing back at the close for 3 consecutive sessions. On Friday, it jumped off smartly making a short term trend change and now trading near 10 days EMA @ 21.80. The Short term Stochastics Oscillator is at 34 and Relative Strength Index near 40.
Fundamental Report: The Precious metals extended gains on Tuesday, as geopolitical instability in the Middle East and dovish comments from Federal Reserve officials added fuel to its rally. The precious metal had already notched a 1.6% rise on Monday, marking its most significant one-day jump in five months, following the unrest. The escalating conflict has injected volatility into the markets, creating a favorable backdrop for gold—a classic safe-haven asset. Additionally, the upcoming corporate earnings season and crucial U.S. inflation data this week add layers of uncertainty that make gold more attractive. Meanwhile, the dollar and bond yields were hit by comments from top-ranking Fed officials, suggesting a pause in interest rate hikes could be on the horizon. For now, fed funds futures traders see a higher chance of no further action by the Federal Reserve this year. They boosted the likelihood of a pause in November to 88.5% from 72.9% a day ago, and of no action by December to 74% from 57.6%, according to the CME FedWatch Tool. That would leave the Fed’s main interest-rate target at a 22-year high of between 5.25%-5.5%.