Gold Technical Report: Gold prices remained in a rangebound mood on Friday and closed the week in red. The prices moved up and touched briefly the conjunction point of 50 days EMA and 100 days EMA near 1930 but slipped in the end. It also crossed below 10 days Exponential Moving Average @ 1924. Next support stands at 200 days EMA @ 1909 whereas resistance lies near 1951 Horizontal TrendLine touchpoint. The short term Stochastics Oscillator is at 54 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 51 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices continued the decline on eightth consecutive day as prices could not hold above close of earlier candle and closed near 200 days EMA @ 22.98. This week alone, prices have crossed below 10 days EMA,50 days EMA and 100 days EMA which are at conjuction point 23.70. Last week it made a the brief intraday high above the psychological mark of 25.00 but it could not hold ground and the reversal started. The Short term Stochastics Oscillator is at 16 and Relative Strength Index near 41.
Fundamental Report: Gold Last week, the ISM Services PMI release recorded a stronger-than-expected print of 54.4 in August, up from 52.7 in July (52.5 expected), marking an eighth consecutive month in expansionary territory for the services PMI. The release triggered a sell-off across major US equity benchmarks and government bonds (underpinning yields) and pulled the dollar to a six-month peak of 105.02 as the odds for a November hike increased to around 60%. Also, the initial jobless claims declined by 13,000 to 216,000 in the week ending 2 September, marking its lowest level since earlier this year (vs 239,000 expected [229,000 previous]). Continuing claims also fell to 1.679 million in the week ending 26 August, marking a decrease of 40,000 from the previous week’s level of 1.719 million (the lowest level since July). The BoE and the ECB rate decision is scheduled this week. The U.S. economy seems to stand strong, with the dollar marking its longest weekly gain in almost a decade, fueled by a series of resilient economic indicators. All these factors are keeping the investors on alert mode.