Gold Technical Report: Gold prices declined on Friday showing weakness as it failed to cross above 10 days Exponential Moving Average @ 1960. The prices earlier kept climbing above July High levels breaking the 2000 mark but shying away from 2010 consistently. The technical pullback last month was strong enough to cross above 50 days, 100 days and also 200 days Exponential Moving Average in a single day. On the reverse, the 10 days EMA has also crossed 200 days and 50 days EMA signifying strength. Gold had been on decline throughout earlier but started the rally with a gap up. Prices had reached at 7 moths low and received a much awaited relief. The short term Stochastics Oscillator is at 12 (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: Silver prices also declined parallely showing weakness. It posted a solid green candle last week as prices crossed and closed above all 10,50,100 and 200 days Exponential Moving Average in a single day. It is trying hard to hit the Oct month highs near 23.70 but faces a strong resistance above 23.00 due to consistent selling pressure. The Short term Stochastics Oscillator is at 11 and Relative Strength Index near 40.
Fundamental Report: Chairman of the Federal Reserve Jerome Powell’s statements during two speeches last week covered the complexities of the thought process Fed members face with their monetary policy and the ramifications they present. Powell said that he believes that for now, it isn’t “appropriate” to increase its benchmark rate. But also added that “We are not confident,” that the Fed’s benchmark rate is high enough to steadily reduce inflation to its 2% target. “If it becomes appropriate” to raise rates further, “we will not hesitate to do so.” The upcoming week for the gold market is likely to be shaped by several economic indicators. Key data releases, such as consumer price inflation and retail sales, are expected and will provide crucial insights into the potential for further rate increases by the Federal Reserve. Despite some interpretations of a dovish Fed, officials, including Powell, have expressed uncertainty about whether the current interest rate levels are sufficient to bring inflation under control.