Gold Technical Report: Gold started the new week with positive note after dismayed performance last week when it broke 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 @ 1902 has crossed below 200 days EMA @ 1907 indicating bearishness. Also, 50 days EMA and 100 EMA are at close conjunction near 1933. The prices will have to regain 1900 quickly now to display any strength. The short term Stochastics Oscillator is at 13 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 36 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also made an impressive start of the week as last week, it 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 @ 22.70. This may be a technical pullback as the 10 days EMA @ 22.99 came closer to 200 days EMA. Also, 50 days EMA and 100 EMA are at close conjunction near 23.48.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 68 and Relative Strength Index near 48.
Fundamental Report :As we head into the final stretch of August, it’s that time of year again when the world’s most powerful central bankers prepare to gather at the Federal Reserve’s eagerly awaited Annual Economic Symposium in Jackson Hole. After an era of relentless inflation and worries that the U.S central banks most aggressive interest rate hiking campaign ever seen would end up tanking economies – there are signs that a recession can be avoided, for this year at least. A recent string of data shows that America’s inflation problem is definitively getting better. That’s good news for Jerome Powell and his colleagues at the Federal Reserve. But it’s dangerous to declare victory just yet. Minutes from the FOMC’s July Monetary Policy Meeting, revealed that most Fed officials continue to see “significant upside risks to inflation”. Broader economic shifts are driving speculation that inflation is going to be sticky and may remain stubbornly above the Fed’s 2% target, for much longer than initially anticipated. According to economists, the uptick in Energy and Agriculture prices could further fan the inflationary fire after a summer of respite. In other words, a “second wave” of inflation, is likely on the way.