Gold Technical Report: Gold prices retraced downwards after the strong pullback on Monday. The prices could not cross the opening level of the day and slipped below 100 days Exponential Moving Average @ 1911, but in the latter half managed to recover a bit and close above it. The technical pullback on Monday was strong enough to cross above 50 days, 100 days and also 200 days EMA in a single day. Gold has been on decline throughout earlier 2 weeks but opened the last week with a gap up. Prices had reached at 7 moths low and received a much awaited relief. The strength prevails till prices sustain the crucial 1900 mark. The short term Stochastics Oscillator is at 90 (it is considered overbought when above 51 and oversold when below 20) and Relative Strength Index (RSI) is at 58 (it is considered overbought when above 48 and oversold when below 30).
Silver Technical Report: Silver prices also declined parallel yesterday. It opened at 50 days EMA @ 22.75 but could not sustain the levels. Silver is trying hard to recover from the downfall it faced for last two weeks. Next target is near the conjunction point of 100 days EMA and 200 days EMA near 23.00. The Short term Stochastics Oscillator is at 66 and Relative Strength Index near 51.
Fundamental Report: Gold, is facing a tumultuous landscape, pulled in opposite directions by U.S. economic indicators and geopolitical undercurrents. The market has its eyes peeled for President Biden’s trip to Israel this week, which is part of an effort to mitigate Middle Eastern tensions. However, gold still struggles to sustain bullish momentum, falling for the second consecutive session. The rise in U.S. Treasury yields to a week-high and a firming dollar are posing challenges for gold, a non-yielding asset. Yields are edging higher ahead of a string of U.S. economic data, including retail sales and industrial production. Inflation data from last week did little to support gold, despite coming in slightly above market expectations. The market is eagerly awaiting Federal Reserve Chair Jerome Powell’s speech later this week, seeking clarity on the Fed’s future rate policy. In the short term, the gold market appears to be clueless, primarily due to the conflicting forces of geopolitical tensions and economic indicators. Unless there is a significant escalation in the Middle East or a drastic change in the Federal Reserve’s tone, gold prices are likely to remain under pressure. Traders are keeping an eye on U.S. Treasury yields and Powell’s upcoming speech for more definitive directional cues.