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 28 and RSI momentum is 34.
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 62 and RSI momentum near 53.
Fundamental Report: Gold prices hit the low of yesterday’s trading session late Wednesday after the U.S. Federal Reserve announced a 75 basis point rate hike as widely expected and indicated it will keep hiking well above the current level. The SPDR Gold Shares ETF (GLD) is at $154.80, down $0.27 or -0.17%. Along with the massive rate increases, Fed officials signaled the intention of continuing to hike until the funds level hits a “terminal rate,” or end point of 4.6% in 2023. Additionally, the “dot plot” of individual member’s expectations doesn’t point to rate cuts until 2024. In their quarterly updates of estimates for rates and economic data, officials coalesced around expectations for the unemployment rate to rise to 4.4% by next year from its current 3.7%. GDP growth is also expected to slow to 0.2% for 2022, rising slightly in the following years to a longer-term rate of just 1.8%. Finally, headline inflation is expected to drift down to 5.4% this year, as measured by the Fed’s preferred personal consumption index and core inflation is expected to decline to 4.5% this year. Also, A wave of risk aversion whacked financial markets on Wednesday after President Vladimir Putin declared a partial mobilization over Ukraine and accused the West of ‘nuclear blackmail’. Ukrainian President Volodymyr Zelenskyy demanded punishment for Russia in his remarks to the United Nations General Assembly on Wednesday. “A crime has been committed against Ukraine, and we demand just punishment,” he said in video remarks, the only state leader allowed to appear virtually this year. He warned that Russia’s warfare near nuclear plants meant no one was safe and again made an appeal for Russia to be branded as a state sponsor of terrorism by all nations — something the Biden administration has so far said it is against. “We must finally recognize Russia as a state sponsor of terrorists, at all levels, in all countries,” Zelenskyy urged. “This is the foundation for restoring global security.”