Gold Technical Report: Gold prices moved up steadily yesterday in a technical pullback. It has been on declining throughout last 2 weeks but opened the new week with a gap up. Prices had reached at 7 moths low and received a much awaited relief. Next major resistance is near 200 days Exponential Moving Average @ 1894 and major support is near 1810 which is recent bottom from where prices picked up. The short term Stochastics Oscillator is at 38 (it is considered overbought when above 51 and oversold when below 20) and Relative Strength Index (RSI) is at 41 (it is considered overbought when above 48 and oversold when below 30).
Silver Technical Report: Silver prices are also trying to recover from the downfall it faced for last two weeks. Yesterday it moved ahead further taking a support near 10 days EMA @ 21.92. The Short term Stochastics Oscillator is at 43 and Relative Strength Index near 46.
Fundamental Report: As Gold (XAU/USD) prices surged to a two-week high early Thursday, riding the tailwinds of a softer U.S. dollar and diminishing Treasury yields. The looming release of consumer price index (CPI) data adds another layer of anticipation, potentially impacting both interest rate decisions by the Federal Reserve and the broader market sentiment. Minutes from the Federal Reserve’s September meeting displayed an air of caution, revealing divisions among policymakers on the path of interest rates. Several Fed officials have also expressed differing opinions on whether further rate hikes are warranted this year, leaving traders speculating about the next moves. The debate over interest rates comes at a time when U.S. inflation has receded from its peak, according to San Francisco Fed President Mary Daly. Higher interest rates generally make gold, which yields no interest, less attractive to investors. But as rate hike expectations diminish, the opportunity cost of holding gold decreases. A higher-than-expected CPI could again raise prospects of tighter monetary policy, potentially pressuring gold prices. Meanwhile, ongoing conflicts in the Middle East continue to act as a booster for revaluation for the safe-haven asset.