Gold Technical Report: The gold prices are trying to form a base above 1700 levels after the correction shown earlier.The short term trend looks bearish as prices are unable to crossover 50 DMA. Any further slippage down the nearest main bottom at $1676 will turn the main trend negative. On the upside, the next resistance will be at 50 DMA @ 1741. The Short term Stochastics Oscillator is at 66 and RSI momentum is near 44.
Silver Technical Report: Silver witnessed a good upmove last week with reversal signs as it crossed above 20 DMA . After 3 continuous green candles at the end of last week, a little correction is expected. Medium term trend looks bearish as 20 DMA has crossed below 200 DMA on weekly charts. The next major resistence will be faced around 50 DMA around 19.19. The Short term Stochastics Oscillator is at 88 and RSI momentum near 50.
Fundamental Report: Gold prices traded a little better late in the session on Friday after giving back more than half of its earlier gains. A rebound in the U.S. Dollar after a steep decline and firm U.S. Treasury yields are behind the intraday giveback in the gold market. At 18:30 GMT, December Comex gold futures are trading $1728.00, up $7.80 or +0.45%. The SPDR Gold Shares ETF (GLD) is at $159.81, up $0.83 or +0.52%. Investors now await U.S inflation data for August due next Tuesday after recent hawkish comments from Fed Chair Jerome Powell cemented bets of a supersized rate hike. Recent Fed data has shown that while inflation is still climbing, the pace of its rise is slowing. In fact, it’s becoming more evident, day by day, that Central banks across the world are fighting a losing battle against rapidly surging inflation and no matter what actions they take now, it will be nowhere enough to tame ever-rising inflationary pressures. For the first time in history, every major central bank from the U.S Federal Reserve, ECB to the Bank of England have come together in a global effort to engineer their most aggressive monetary tightening cycle since the early 1980s. And so far, those efforts have hardly made a dent on inflation. This week, the European Central Bank officially became the latest major bank to join the “Super-Sized Rate Hike Club” – following in the footsteps of the Fed and Bank of England by announcing their very own 75-basis-point interest rate hike. The ECB has lagged behind most major central banks in its response to record high inflation. The U.S Federal Reserve is widely expected to announce a third consecutive 75-basis-point rate hike later this month and the Bank of England may not be that far behind, with a similar magnitude move. Forecasts suggest that the global inflation will likely get worse before it gets better. Even Fed Chairman Jerome Powell warned of “significantly higher” inflation to come this year, during his recent speech at the Jackson Hole Economic Summit.