Gold Technical Report: After the continuous fall in the last week, gold prices playing rangebound recently. As long as they trade below the main bottom at $1680. they poses the risk of the main trend turning negative. We may expect some bounceback here as prices near 200 DMA on weekly charts.On the upside, the next resistance will be at 50 DMA @ 1736. The Short term Stochastics Oscillator is at 24 and RSI momentum is 33.
Silver Technical Report: Silver is playing rangebound after it ended last week with a big green candle as the prices just touching down and then bouncing back from 20 DMA with reversal signs.The next major resistence will be faced around 20.21 wich is a triple support in mid-August. The Short term Stochastics Oscillator is at 61 and RSI momentum near 52.
Fundamental Report: Gold prices traded in narrow range on Tuesday in a lackluster trade as traders brace for tomorrow’s U.S. Federal Reserve interest rate decision that could set the tone in the market for months. Although the U.S. Dollar is trading nearly flat, U.S. Treasury yields continue to rise, weighing on demand for non-yielding bullion. At 12:00 GMT, December Comex gold is trading $1676.70, down $1.50 or -0.09%. The SPDR Gold Shares ETF settled at $155.97, up $0.13 or +0.08%. Ahead of the start of the Fed’s two-day meeting later today, traders are pricing in a 75 basis point rate hike by the central bank. However, some are saying there is an outside chance that we could see a full-percentage point hike, which could trigger a $70 to $100 near-term break in gold. Gold is expected to remain under pressure over the near-term when you consider the number of central banks lining up for interest rate hikes. Earlier today, the Swiss National Bank (SNB) surprisingly raised its benchmark interest rate more than expected. The Fed is expected to hike its benchmark on Wednesday, followed by another rate hike by the Bank of England (BoE). The Bank of Japan is also scheduled to meet, but it is expected to maintain its ultra-dovish interest rate policy. The dollar holding close to a two-decade high is also pressuring demand for gold along with a surge in U.S. Treasury yields into levels not seen since 2007. Even with global inflation near decades old highs, demand for gold has been scarce, despite the metal’s reputation as a hedge against inflation. The reason for this is non-yielding gold’s inability to compete with rising government debt yields. Another sign of weakness is the poor performance in the SPDR Gold Trust ETF (GLD). Investors have been liquidating this ETF en masse, driving its price into its lowest levels since March 2020.