Gold Technical Report: Last week gold has broken below $1900 key level and significant psychological price point and prices remained in red for all the 5 sessions. The 10 days Exponential Moving Average @ 1903 has crossed below 200 days EMA @ 1906 indicating bearishness. Also, 50 days EMA and 100 EMA are at close conjunction near 1934. The prices will have to regain 1900 quickly now to display any strength. The short term Stochastics Oscillator is at 7 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 31 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices remained under selling pressure for initial part of the week but tried to recover some ground in the end and closed near 200 days EMA @ 22.72. This may be a technical pullback as the 10 days EMA @ 22.82 coming closer to 200 days EMA. Also, 50 days EMA and 100 EMA are at close conjunction near 23.46. The prices need to stabilize at these levels which is also low we saw in June from where it had moved all the way up to major psychological levels of 25.00. The Short term Stochastics Oscillator is at 25 and Relative Strength Index near 41.
Fundamental Report : Gold shows resilience against recent declines, with Jerome Powell’s impending remarks scheduled on Aug. 25 adding a layer of intrigue to gold’s value speculation. Last week, prices saw a slight reprieve from recent declines, moving off 5-month lows as the market awaits insights from central bankers’ gathering in Jackson Hole, Wyoming. Key discussions on economic outlooks and interest rate decisions have kept investors on alert mode. This nervous momentum is evident as gold struggled, earlier touching a mid-March low, prompted by robust economic data fueling expectations of prolonged higher U.S. interest rates. Such rates often dampen the allure of non-yielding assets like gold. In the currency realm, the dollar’s steadfast hold above the 103-mark continues to challenge gold’s progress. With global attention focused on U.S. Federal Reserve chair Jerome Powell’s upcoming speech, anticipation mounts on whether his statements will align with the recent hawkish undertones of the FOMC minutes. Notably, most economists in a Reuters poll suggest the Fed may halt further interest rate hikes, with a slight tilt towards those believing a potential cut might only emerge post-March. Rising Treasury bond yields and increasing home mortgage rates hint at a possible wane in the Federal Reserve’s enthusiasm for more hikes, especially given the softer inflation backdrop.