Gold Technical Report: The gold prices fizzled out from the intraday High of 1808 yesterday , back to below 1800 mark on profit booking. However they are trying to find support at 50 DMA near 1780. Since the 50 DMA still trading below 200 DMA on daily charts keeps medium term still bearish. Any slippage down the nearest main bottom at $1676 will turn the Main trend negative. On the upside, the immediate resistance for main trend is the 200 DMA of 1841. The Short term Stochastics Oscillator is at 65 and RSI momentum is near 56.
Silver Technical Report: Silver prices look little tired after crossing above 50 DMA this week. We may expect fresh buying support emerging against profit booking here, heralding volatility in prices, if they manage to stay above 50 DMA. Next major resistence will be faced only around 21.00, the levels not seen after June. The Short term Stochastics Oscillator is at 78 and RSI momentum near 58.
Fundamental Report: Gold prices are came off the top, late in the session on Wednesday as hawkish remarks from U.S. Federal Reserve officials offset hopes of a let up in aggressive policy tightening following the release of a report showing softer-than-expected inflation data. At 6:30 GMT, gold prices are trading $1786, down $5.20 or -0.29%. The SPDR Gold Shares ETF (GLD) is at $166.84, down $0.36 or -0.21%.Yesterday’s U.S. government consumer inflation report came in “softer” than expected with headline inflation coming in flat in July and core inflation climbing 0.3%, below expectations. Gold prices firmed initially on the news, but began to retreat when traders realized the report still showed underlying inflation pressures remain elevated, meaning the Federal Reserve will continue to contemplate whether to embrace another super-sized interest rate hike in September. The next FOMC meeting which will run from September 20 – 21. According to the CME’s FedWatch tool, there is a 69.5% probability that the Federal Reserve will initiate its third consecutive 75 basis point rate hike and a 30.5% probability that the Fed will raise rates by 50 basis points. The probability that the Fed will enact the third consecutive 75-basis point hike in September has doubled in the last month. On July 8, 2022, the CME’s FedWatch tool was forecasting that there was a 31.4% probability of a ¾% rate hike in September. Just last week on August 2 the FedWatch tool forecasted that there would be a 41% probability. The dollar has declined fractionally over the last Three trading days.
US House of Representatives Speaker Nancy Pelosi said on Wednesday, the US couldn’t let China establish a “new normal” around Taiwan, per Bloomberg. Chinese leaders had been “trying to push their way” toward their goals on Taiwan.” “What we saw with China is they were trying to establish sort of a new normal.” “And we just can’t let that happen.” The US dollar index is on a gradual recovery mode amid renewed Sino-American tensions over Taiwan, which have translated on the trade front. The Chinese military said on Wednesday it had completed its exercises around Taiwan but would regularly conduct patrols and drills in the area, an apparent confirmation of fears in Taipei and Washington that Beijing intended to normalise a closer military presence. The People’s Liberation Army Eastern Theatre Command said in a statement it had “completed the various tasks” in a series of joint military operations around Taiwan. But it added that it would “keep a close eye on changes in the situation” and continually train, prepare and organise regular patrols “in the direction of the Taiwan Strait”. The statement came after Taiwan’s Beijing-friendly opposition party sent its deputy leader to China on a trip that Taipei warns risks sowing internal division in the face of the unprecedented military pressure campaign.