Gold Technical Report: Gold prices made unsuccessful attempt to cross above 10 DMA @ 2020 in earlier part of the session but then attracted selling pressure and broke below 2000 mark. Gold has been facing moderate pressure on continuous profit booking after it made a new high around 2080 earlier this month. It managed to find some support near 50 DMA @ 1977. The current prices are trading above major support at 200 DMA @ 1823 (below which the trend may turn bearish ) hence, the medium term trend looks upwards. The short term Stochastics Oscillator is at 20 (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 also declined following the suit and crossed below 50 DMA @ 24.00 . However it still trades above the support of 100 DMA @ 23.33. The medium term trend looks intact as both of these averages above 200 DMA @ 21.85. The Short term Stochastics Oscillator is at 9 and Relative Strength Index near 36.
Fundamental Report: A second debt limit meeting between President Joe Biden and Senate majority leader McCarthy and other top congressional leaders was scheduled on Tuesday, May 16. President Joe Biden and House Republicans remained far apart, following an hour long meeting on the debt ceiling in the Oval Office that all four top congressional leaders attended.The divide between both sides was too wide for any progress to result from their first meeting. Staff on both sides negotiated through back channels to find common ground and potential compromises. However, things looked a little brighter as attendees observed, they made progress, including through an agreement to turn the multilateral debt limit negotiations into direct one-to-one talks between a close ally of House Speaker Kevin McCarthy and two White House aides, on Biden’s behalf. “There was an overwhelming consensus I think in today’s meeting with congressional leaders that defaulting on the debt is simply not an option,” Biden told reporters. The White House said Biden “directed staff to continue to meet daily on outstanding issues. He said that he would like to check in with leaders later this week by phone, and meet with them upon his return from overseas.” It was “a good and productive meeting,” said Senate Majority Leader Chuck Schumer, D-N.Y., who noted that it was “more cordial” than a previous meeting last week. These positive developments on the ecopolitical front boosted the Dollar index and safe heaven assets witnessed some liquidation.