Daily Report – 18 July 2022

18 July 2022
OTC Market Data
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Gold Technical Report: Gold medium term trend continues to remain bearish after breaching 1700 mark last week. Also we may witness some technical bounce back from 1700 mark.The 50 DMA has already crossed below 200 DMA on daily charts. Any slippage down the nearest main bottom at $1676 will turn the Main trend negative. On the upside, the immediate resistance is 10 DMA zone at $ 1730 and then the Psychological mark of 1800  .Both, the Short term Stochastics Oscillator at 25 and RSI momentum below 28 are signaling short term oversold positions .

Support 3
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Silver Technical Report: Silver medium term trend is bearish after breaching 19.00 mark last week. The value buying was overweighed by continuous selling pressure. On the upside, the major uptrend reversal will come only at 20 DMA zone at $19.88. Both, the Short term Stochastics Oscillator at 39 and RSI momentum below 33 are signaling short term oversold positions.

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Resistance 1
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Fundamental Report: The Gold futures are trading slightly lower at the mid-session on Friday, while heading for its fifth consecutive weekly loss. Although bullion took a beating this week due to a sharp rise in the U.S. Dollar, today, the weaker dollar is underpinning gold. A dip in Treasury yields is also supporting gold today, but a sharp rise in yields has been damaging to gold prices this week. At 17:50 GMT, gold is trading $1702.80, down $3.00 or -0.18%. The SPDR Gold Shares ETF (GLD) is at $158.86, down $0.47 or -0.29%. Markets are, hurt by fears the U.S. Federal Reserve could move toward a more aggressive interest rate hike at its July 26-27 monetary policy meeting to fight red-hot inflation. Breaching 1700 mark on intraday basis signal downside possible. The traders believe the Fed will front-load its rate hikes but not necessarily increase overall rate hike expectations. According to the FedWatch indicator, the Fed is seen ramping up its battle with sky-high inflation with a supersized 100 basis points rate hike at its upcoming policy meeting on July 26-27. With some experts still pressing for a 75-basis point rate hike at the Fed meeting, and others now pushing for a 100-basis point rate hike, there is enough room to produce a choppy, two-sided trade ahead of the Fed decision. To look at it another way, based on the inflation data, some traders now see a 75-basis point rate hike as “dovish” when compared to the possibility of a 100-basis point rate hike.

The U.S. Dollar fell on Friday as investors evaluated how high the Federal Reserve is likely to raise interest rates by when it meets later this month and as investors took profits after a strong rally that sent the greenback to a two-decade high on Thursday. This may be the reason the selling pressured eased today. The story was different throughout the week, however, as gold prices plunged as the greenback jumped amid expectations of faster and further rate hikes than peer central banks as inflation soars to four-decade highs. U.S. retail sales rebounded strongly in June as Americans spent more amid soaring inflation, which could allay fears of an imminent recession but not change the view that growth in the second quarter are tepid. Gold traders showed little reaction to the news as most believed high inflation was responsible for the jump in retail sales and not actual increased buying.

Key US Economic Reports & Events
NAHB Housing Market Index
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