Gold Technical Report: Gold prices remained rangebound on Monday and registered a small doji candle to close at 10 days Exponential Moving Average @1960. Now, the next target is to cross 50 days EMA @1968 with a support at 100 days EMA @1938. Long term trend is showing up as the prices and all these averages are trading above 200 days EMA @1868. The short term Stochastics Oscillator is at 52 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 46 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver prices declined yesterday but managed to find support 50 days EMA @23.91 as they retraced back from the intra day low. The medium term trend looks intact as all of these averages are above 200 days EMA @22.41. Some upside movement can be expected as 10 days EMA @23.86 is poised to cross above 50 EMA. The Short term Stochastics Oscillator is at 80 and Relative Strength Index near 53.
Fundamental Report: This week is all about the macroeconomics with trader’s attention firmly focused on a string of hotly anticipated data releases including U.S Consumer Price and Producer Price Inflation figures, as well the outcome of The Federal Reserve and European Central Bank’s interest rate decisions. Taking front and centre stage will undoubtedly be the Federal Reserve’s Monetary Policy Meeting on June 13-14. Over the past 16 months, the Federal Reserve has rolled out their most aggressive interest rate hiking campaign ever in history. And so far, their efforts to cool the economy and lower inflation has barely made a dent. Inflation is proving resilient and there is a risk that it will remain high even as growth sags. With the Fed’s credibility at stake and inflation still well above their 2% target, there is now huge pressure on policymakers to “stay the course” in their fight against stubbornly high inflation. Extraordinary times create extraordinary opportunities. Regardless of how upcoming events unfold, the Fed’s next move is about to impact the markets, bringing with it new opportunities.