Gold Technical Report: Gold prices rallied up slowly and steadily yesterday for major part of the day till reaching the TL resistance and then suddenly witnessed event based selling pressure. It has however maintained support of 10 days EMA @ 1924 and that of the conjunction point of 50 days EMA and 100 days EMA near 1929. Major support is near 200 days EMA @ 1909 and major resistance lies near 1951 Horizontal TrendLine touchpoint. The short term Stochastics Oscillator is at 59 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 53 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also moved in tandem along with gold prices. It opened and traded throuout above the 200 days EMA @ 23.05 and closed above 10 days EMA @ 23.20. Next target is near 23.48 where 51 days EMA and 100 days EMA are at conjuction point and closing above this will mark an upttrend. The Short term Stochastics Oscillator is at 40 and Relative Strength Index near 47.
Fundamental Report: The Federal Reserve Chair Jerome Powell delivered a word of caution following today’s recent Federal Open Market Committee (FOMC) meeting. Addressing the Fed’s updated rate forecasts, Powell emphasized that the presented outlook isn’t necessarily indicative of a concrete plan. The new projections simply suggest that the economy might outperform earlier expectations. Powell, who oversaw a decision to maintain steady rates but hinted at a possible increase by year-end, stressed the need for flexibility. He stated, “We are prepared to raise rates further if appropriate. Central bank’s current approach has garnered widespread attention. Ahead of its meeting, there were strong expectations for significant rate cuts in the coming year. These expectations have since been tempered by projections indicating that 10 of 19 officials foresee the policy rate lingering above 5% through the next year. Market responses were swift. The two-year Treasury note surged to its highest since July 2006, stocks closed lower, and the dollar made a comeback against major currencies. With the recent turn of events, traders seem less optimistic about rate reductions in the future.