Gold Technical Report: Gold sustained strength and acceptance above the 50-day SMA will set the stage for an extension of the recent recovery from the $1,984 region or a two-month low touched last week. Given that oscillators on the daily chart have been gaining positive traction, the Gold price might then accelerate the positive move towards an intermediate hurdle near the $2,044-2,045 region en route to the $2,065 supply zone.
On the flip side, the $2,015 area could protect the immediate downside ahead of the 100-day SMA, currently pegged near the $2,000 psychological mark. Some follow-through selling, leading to a subsequent break through the $1,984 area or the monthly low, will be seen as a fresh trigger for bearish traders. The subsequent downfall has the potential to drag the Gold price to the very important 200-day SMA support near the $1,965 region.
The short term Stochastics Oscillator is at 52 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 59 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices remained in a narrow range and registered a DOJI candle showing indecision yesterday after a pullback . It had almost fully reversed the gains of previous session when it crossed above 200 days EMA for the first time in last 36 days. The recent upmoves were capped around 23.40 where all 50,100 and 200 days Exponential Moving Averages are clustering. The Short term Stochastics Oscillator is at 70 and Relative Strength Index near 49.
Fundamental Report: The Gold prices, remain in caution mode as traders keenly await the release of the FOMC meeting minutes, due later during the US session. Investors will look for cues about the Federal Reserve’s (Fed) rate-cut path, which will play a key role in influencing the near-term US Dollar (USD) price dynamics and provide a fresh directional impetus to the non-yielding yellow metal. Growing acceptance that the Fed will lower rates by mid-2024 keeps the USD bulls depressed near its lowest level in over two weeks set on Tuesday and acts as a tailwind for the Gold price. Adding to this, geopolitical risks stemming from conflicts in the Middle East and the prolonged Russia-Ukraine war remain supportive of the bid tone surrounding the safe-haven precious metal. That said, the latest optimism led by hopes that additional stimulus from China will boost global growth and elevated US Treasury bond yields might hold back investors from commiting additional capital.