Gold Technical Report: Gold prices bounced back from the intra day low and crossed 100 days Exponential Moving Average @ 1937 and 10 days EMA @ 1954 . Upside resistance stand around 50 days EMA@ 1968. Long term trend is still intact as the prices and all these averages are above 200 days EMA @ 1869. The short term Stochastics Oscillator is at 44 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 48 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver prices moved up yesterday from the intra day low and crossed above 100 days EMA @ 23.51. It closed between 10 days EMA @ 23.82 and 50 days EMA @ 23.91. The medium term trend looks intact as all of these averages are above 200 days EMA @ 22.44. Further more upside movement can be expected if 10 days EMA crosses above 50 days EMA. The Short term Stochastics Oscillator is at 63 and Relative Strength Index near 51.
Fundamental Report: Gold bounced back from a three-month low on Thursday following encouraging U.S. economic data that provided a brief respite from the Fed’s “hawkish pause” on interest rate hikes. However, gold is currently facing obstacles in its quest to climb higher due to the Fed’s steadfast stance on inflation and interest rates. The central bank’s unwavering tone is reducing the allure of gold for investors, as the anticipation of future interest rate increases looms on the horizon. Although gold is traditionally regarded as a safe haven during times of economic uncertainty, the appeal of zero-yield bullion is dampened by higher interest rates. Consequently, the conflicting dynamics of a safe haven asset and rising borrowing costs are impacting gold’s performance in the market. Traders are now factoring in a 72% likelihood of a 25-basis point rate hike in July, as indicated by the Fed’s latest projections. The central bank hinted that borrowing costs may need to rise by up to half a percentage point by the end of the year. As this expectation takes hold, gold’s pricing dynamics are influenced, particularly by the strength of the U.S. dollar.