Gold Technical Report: Gold prices spiked up to May High levels on Friday but fizzled down at the close due to weekend profit bookings. The technical pullback this month was strong enough to cross above 50 days, 100 days and also 200 days Exponential Moving Average in a single day. On the reverse, the 10 days EMA has also crossed 200 days and 50 days EMA signifying strength. Gold had been on decline throughout earlier but started the rally with a gap up. Prices had reached at 7 moths low and received a much awaited relief. The short term Stochastics Oscillator is at 88 (it is considered overbought when above 51 and oversold when below 20) and Relative Strength Index (RSI) is at 69 (it is considered overbought when above 48 and oversold when below 30).
Silver Technical Report: Silver prices also rallied parallelly hitting the last month highs but faced a resistance at the close . Silver is trying hard to recover from the downfall it faced for last two weeks. Next target is near Sep Highs 23.76 after crossing the conjunction point of 100 days EMA and 200 days EMA successfully. The Short term Stochastics Oscillator is at 85 and Relative Strength Index near 57.
Fundamental Report: Gold prices rally and fall back amidst the uncertain geo political scenario, rising U.S. Treasury yields and a stronger dollar, as investors eye PCE and Q3 GDP; XAU/USD sentiment remains cautiously bullish. Investor sentiment recently boosted gold, with prices surging 9% in the past two weeks as tensions intensified. However, the yield on benchmark U.S. Treasuries has been relentlessly increasing, keeping gold prices well below the May 4 peak of over $2,000 per ounce. Beyond geopolitics, market watchers are eyeing the U.S. PCE price index, Q3 GDP figures, the European Central Bank’s rate decision, and global flash PMIs. The SPDR Gold Trust, the world’s largest gold-backed ETF, increased its holdings by 1.8% on Friday, reflecting sustained investor interest. According to recent COMEX data, non-commercial traders have turned significantly bullish, while commercial traders hold a more bearish stance. The open interest shows new money flowing into the market, which could signal strong trends ahead. Despite commercial traders’ bearish positions, the overall sentiment leans bullish due to the actions of non-commercial traders. Considering the geopolitical tensions, rising yields, and trader positions, the short-term outlook for gold appears cautiously bullish. Any escalation in Middle East conflicts could quickly reignite safe-haven buying, whereas upcoming economic data may offer cues for future price movements.