Gold Technical Report: Gold prices moved up strongly yesterday reaching the last mont high level and registered a green Maribozu candle on daily charts. The technical pullback on Monday was strong enough to cross above 50 days, 100 days and also 200 days Exponential Moving Average in a single day. On the reverse, the 10 days EMA has already crossed 200 days and 50 days EMA signifying strength. Gold had 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 95 (it is considered overbought when above 51 and oversold when below 20) and Relative Strength Index (RSI) is at 64 (it is considered overbought when above 48 and oversold when below 30).
Silver Technical Report: Silver prices remained volatile as it spiked up crossing above 100 days EMA @ 23.11 but witnessed selling pressure and fizzled below 23.00 mark. Silver is trying hard to recover from the downfall it faced for last two weeks. Next target is near Sep Highs 23.76 after crossing the conjunction point of 100 days EMA and 200 days EMA successfully. The Short term Stochastics Oscillator is at 84 and Relative Strength Index near 56.
Fundamental Report: Gold is proving resilient despite the tug-of-war between a strong U.S. dollar and climbing Treasury yields. Hovering near a 2.5-month high, the precious metal is basking in its role as a safe-haven asset, thanks to increasing Middle East tensions. Investors are closely monitoring Fed Chair Jerome Powell’s upcoming speech for further cues on interest rate policy. On the domestic front, recent economic data has shown mixed signals. Housing starts were slower than expected in September, while retail sales exceeded forecasts. These developments have thrown some investors into a state of caution regarding the trajectory of interest rates. Meanwhile, markets are pricing in a 94% chance of rate stabilization in the Fed’s November 1 meeting, although speculation of a December hike has gained traction. Traders are navigating a complex landscape as Treasury yields reach fresh multi-year highs. The 10-year yield has recently eclipsed 4.9%, a level not seen since 2007, making non-yielding gold less attractive. Despite this, gold has surged nearly 8% from its seven-month low in early October, showing remarkable resilience amid an uncertain backdrop.