Gold Technical Report: Gold prices slid further yesterday making a green Doji but managed to find support near 10 Day Moving Average (DMA) @ 1986. Both 10 DMA and 50 DMA @ 1901 are trading above 200 DMA @ 1789 hence, the medium term trend looks upwards. The major support stands at 200 DMA below which the trend may turn bearish. The short term Stochastics Oscillator is at 68 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 61 (it is considered overbought when above 70 and oversold when below 30) .
Silver Technical Report: The silver prices continued the upmove but are facing resistance near day high as unable to cross these levels for last 4 trading sessions. It has a strong support near the common area of 100 DMA @ 22.72 and 50 DMA @ 22.32. The medium term trend looks bullish as both of these averages above 200 DMA @ 21.09. The Short term Stochastics Oscillator is at 89 and Relative Strength Index near 75.
Fundamental Report: April is certainly shaping up to be an incredibly profitable month with a monetary policy failure, re-accelerating inflation and recession risk now emerging as the three biggest macro themes driving the Commodity markets. This week is all about the macroeconomics with trader’s attention firmly focused on a string of hotly anticipated data releases including the FOMC Monetary Policy Meeting Minutes, U.S Inflation and Unemployment Data – as well as the eagerly awaited OPEC and IEA Oil Market Reports. Earlier this month, ISM manufacturing and service gauges both fell more than expected, underscoring the potential economic damage from the collapse of several prominent banks from Silicon Valley Bank to Signature Bank as well as the disorderly implosion of Credit Suisse. However, appetite for the precious metal was hit by last Friday’s US jobs report which boosted bets around the Federal Reserve raising rates by 25 basis points in May. US payrolls increased by 236k in March, printing in line with expectations while the unemployment rate dropped to near-record lows of 3.5%. The upwardly revised payrolls figure for February of 326k was the icing on the cake, as the overall jobs report eased concerns that the world’s largest economy is heading for a recession. Given how this development may offer support to the dollar and feed Fed hike expectations, gold bulls could be caged in the short term. Gold prices have been on a tear over the past few weeks as the horrible combination of banking fears and recession concerns fuelled risk aversion. After securing a weekly close above the $2000 level for the first time since August 2020, the key question is whether bulls have what it takes to push prices to the all-time high at $2075. While the fundamentals favour further upside, bears could be inspired by the renewed focus on inflation as the banking turmoil cools.