Gold Technical Report: The gold witnesses a strong rally last week . The prices have picked up pace after crossing 50 DMA @ 1679 on Daily charts and yesterday continued the move. The next Major resistance is 200 DMA @ 1803, above which the main trend will turn positive. The short term Stochastics Oscillator is at 91 and Relative Strength Index is at 70.
Silver Technical Report: The silver prices also parallel with Gold witnessed a sharp upmove last week. Positive for silver unlike gold is that prices were already above 50 DMA and now have also crossed 200 DMA @ 21.42. Downside, major support is only at 50 DMA @ 19.66 , crossing below which will change the medium term trend into negative. The Short term Stochastics Oscillator is at 65 and RSI momentum near 64.
Fundamental Report: Russia’s invasion of Ukraine has been escalating to accelerated levels of military action. According to sources in Ukraine and reported by Reuters news, “Russia rained missiles on cities across Ukraine on Tuesday in what Ukraine said was the heaviest wave of missile strikes in nearly nine months of war, echoing a pattern in recent weeks of Moscow lashing out far from the front after battlefield losses.” Today the Russian military launched over 100 missiles and drone attacks into Ukraine in the latest escalation of its invasion.
This escalation has led to missiles landing in Poland and killing two people in an explosion in Przewodow, a village in eastern Poland approximately 10 km from the border with Ukraine. Concerns have emerged that because Poland is a member of NATO, the Russian missile strike could certainly risk widening the war in Ukraine. In a report by Reuters today, “Ukraine’s President Volodymyr Zelenskiy said on Tuesday, without producing evidence, that Russian missiles had hit Poland, a NATO country, in what he called a “significant escalation” of the conflict.” However, the Pentagon and the US State Department said they could not confirm the report but were working with the Polish government to gather information. The State Department did acknowledge that the report was “incredibly concerning”. Russia’s invasion of Ukraine is now in its ninth month and has worsened with the largest wave of missile strikes many of which have targeted the Ukrainian civilian population. This most recent missile strike into Poland if confirmed triggers treaty articles by NATO under which NATO members will meet to assess the threat and if necessary take concrete action. NATO Secretary General Jens Stoltenberg said on Monday, “It is up to Ukraine to decide what terms are acceptable for negotiations to bring an end to the war Russia is waging against the country, warning Moscow’s strength should not be underestimated despite Kyiv’s recent battlefield successes.