Gold Technical Report: Gold prices closed in red for the third straight session yesterday after making an intra day high near 100 days Exponential Moving Average @ 1937 but failed to move up. Long term trend is still intact as the prices and major averages are above 200 days EMA @ 1869. However, it needs to regain the levels of 10 days EMA @ 1944 and then 50 days EMA @ 1966 to trade stronger. The short term Stochastics Oscillator is at 22 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 44 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver prices too, closed in red for the third straight session yesterday and closed near to intra day low like a Moribozu candle. As 10 days EMA @ 23.38 crossed below 100 days EMA @ 23.48, further downside can be expected . Now, 200 days EMA @ 22.42 hold a critical support level from medium term perspective. The Short term Stochastics Oscillator is at 14 and Relative Strength Index near 35.
Fundamental Report: Yesterday, Chairman Powell testified before the House Financial Services Committee . This is part of his semiannual report which will conclude tomorrow when he appears before the Senate Banking Committee. His opening statement was close to a word-for-word repeat of his opening statement at last week’s press conference. Most importantly, the chairman did little to convey any new information regarding upcoming rate hikes and inflation that was not said last week. The key takeaway from last week’s press conference and today’s testimony was twofold. First, he and other Fed officials agree that there should be further interest rate hikes. Secondly, he expects rates to remain elevated throughout the remainder of this year. Speaking before Congress he said that it was a “pretty good guess” that the central bank would hike rates twice more this year. Powell underscored the rationale for more rate hikes saying, “Inflation pressures continue to run high, and the process of getting inflation back down to 2% has a long way to go”.