Gold Technical Report: Gold price yesterday drifted down for fourth straight day as it retraced from the intra day high near 10 days Exponential Moving Average @ 1932, which had recently crossed below 100 EMA @ 1938, indicating bearishness. The primary trend support is near 200 days EMA @ 1909. If prices move above 1971 which is last 3 months TrendLine resistance, it will open room for further advancement upto the major psychological level of 2000 and above. The short term Stochastics Oscillator is at 8 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 36 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices registered gravestone doji candle which may prompt quick short term uptick after earlier three days of continuous decline. The 10 days EMA @ 23.25 had recently crossed below 100 days EMA @ 23.58 indicating bearishness. The prices are currently hovering around Primary Trend support is near 200 EMA @ 22.68 below which it will turn bearish. The Short term Stochastics Oscillator is at 7 and Relative Strength Index near 36.
Fundamental Report : Yesterday, Unemployment Claims rose from 227K to 248K surpassing the expected figure of 231K. The U.S. Consumer Price Index (CPI) witnessed a 3.2% year-on-year rise, falling just short of the anticipated 3.3%. This development has fueled speculation that the U.S. Federal Reserve may not opt for another interest rate hike in 2023. It’s pivotal to note that hikes in interest rates can dampen gold’s appeal. These hikes can elevate bond yields, subsequently increasing the opportunity cost of possessing non-yielding assets like gold. However, there’s a conflict in the CPI data. While the core CPI’s growth rate of 4.7% was slower than projected, it still isn’t an ideal figure. The gold market responded with a lukewarm rise, signaling a lack of firm conviction among traders. Additionally, comments from Fed member Mary Daly introduced further ambiguity. She hinted that decisions regarding future rate adjustments, be it maintaining or hiking, remain undecided. The U.S. dollar index and 10-year Treasury bond yields are both on a path to mark their fourth successive weekly ascent.