Gold Technical Report: Gold prices further moved up strongly for second consecutive day yesterday targeting July high level and registered a green Maribozu candle on daily charts. The technical pullback last week 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 also 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 short term Stochastics Oscillator is at 94 (it is considered overbought when above 51 and oversold when below 20) and Relative Strength Index (RSI) is at 70 (it is considered overbought when above 48 and oversold when below 30).
Silver Technical Report: Silver prices also moved up parallelly crossing above 23.00 mark but faced a resistance near 100 days EMA @ 23.13 . 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 85 and Relative Strength Index near 57.
Fundamental Report: Gold gained momentum to $1,978, the highest level since late July as the precious metal is bolstered by the decline of the US dollar following Fed Powell’s dovish comments and a safe-haven flow. The US Dollar Index (DXY), a measure of the value of USD against six other major currencies, consolidates its recent losses around 105.85. US Treasury yields edge higher, with the 10-year Treasury yield settling at 4.99%, the highest level since 2007. Despite diplomatic efforts by planned visits by the U.S. president and the U.K.’s prime minister to Israel, gold and oil prices continue to surge in response to escalating Middle East tensions. Despite diplomatic efforts by world leaders, including planned visits by the U.S. president and UK’s prime minister to Israel, gold and oil prices continue to surge in response to escalating Middle East tensions. Gold has reached its highest level since July, reflecting heightened global uncertainties. In the financial sphere, Federal Reserve Chairman Jerome Powell’s recent speech aligned with his colleagues, indicating that the bond market has tightened financial conditions, potentially reducing the need for additional Fed rate hikes. This message signaled a desire to pause rate hikes and watch how economic data develops in the coming months. Powell further stated that further tightening of monetary policy might be appropriate if there is more evidence about above-trend growth and a tight labor market. His comments dragged the USD lower broadly and boosted USD-denominated gold. This dovish stance led to a plunge in the dollar, as markets perceived that the Fed’s rate had peaked. Attention now turns to the UK’s retail sales data, which will serve as a key indicator of the Sterling’s strength, providing valuable insights into the economic landscape. The US job data on Thursday indicated the economy in the US remains solid. The weekly Initial Jobless Claims dropped to 198,000 for the week ending October 14, the lowest level since January. Existing home sales fell 2.0% MoM in September and 19% YoY, the lowest level since 2010. These numbers indicate that higher mortgage costs negatively impact housing market confidence.