Gold Technical Report: Gold prices continued the downfall of earlier two sessions yesterday. The prices opened above the conjunction point of 50 days EMA and 100 days EMA near 1928 abut then slipped down and also crossed below the 10 days EMA @ 1923. Now, next support is near 200 days EMA @ 1913 and major resistance lies near 1951 Horizontal TrendLine touchpoint. The short term Stochastics Oscillator is at 48 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 52 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices witnessed a volatile session yesterday. It slipped below 10 days EMA and 200 days EMA near 23.29 to make a day low near 22.80. However recovered smartly to again cross above both and made a day high near conjunction point of 50 days EMA and 100 days EMA near 23.50. The Short term Stochastics Oscillator is at 76 and Relative Strength Index near 54.
Fundamental Report: The rate hike pause by the Federal Reserve was already factored into market prices; but the hawkish tone almost assures that interest rates will remain elevated not only through the rest of this year but well into 2024 was not. The revision to the Federal Reserve’s monetary policy sent shockwaves through the financial markets at large. The Fed is likely to raise rates one more time by ¼ % this year. This would take the Fed funds rates interest rate to between 5.5% and 5.75%. The new projections indicate that the Fed intends to keep its terminal rate above 5% throughout the entire calendar year of 2024. The main point was that the Federal Reserve now intends to only implement two rate cuts next year rather than four. This means the American public and businesses can expect to see the cost of borrowing remain extremely elevated above 5% for the entire upcoming year. This was unexpected and took a day to sink in as seen in the financial markets across the board.