Gold Technical Report: Gold prices increased yesterday for the second straight session towards $1900 key level and closed just below the 10 days Exponential Moving Average @ 1901 after dismayed performance last week when it broke below the significant psychological price point. The 50 days EMA and 100 EMA are at close conjunction near 1935. The prices will have to move above 200 days EMA @ 1908 to display any strength. The short term Stochastics Oscillator is at 30 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 40 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver also made an impressive start of the week closing above 200 days EMA @ 23.06 after 10 trading sessions. Also 10 days EMA @ 23.12 crossed above 200 days EMA. The 50 days EMA and 100 EMA are at close conjunction near 23.50. The Short term Stochastics Oscillator is at 72 and Relative Strength Index near 54.
Fundamental Report : All the investors and analysts await the speech from Chairman Powell at the central bank’s summer symposium this Friday. The world’s most powerful central bankers prepare to gather at the Federal Reserve’s 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. Specifically, market participants want to know if the Fed will maintain its current mandate and raise rates by ¼% one last time this year, or if the Fed will pivot from its current monetary tightening campaign. Considering that inflationary pressures have declined from 9.1% at their peak in June 2022 with the most recent data indicating that inflation in July came in at 3.2%, it is unlikely that Powell will unleash a speech of fire and brimstone as he did one year ago. That being said, the Federal Reserve’s mandate of taking inflation to 2% has not been taken off the table but rather reinforced by statements of multiple Federal Reserve officials.