Gold Technical Report: Gold prices declined for third time in a row on Friday and closed near 10 days Exponential Moving Average @ 1958. Although in the first half of last week it displayed strength as it crossed above 100 DMA @ 1939 and this week crossed above 50 days EMA @ 1950. If these levels sustain, it will open room for further advancement upto the major psychological level of 2000 and above. Main support level is near 200 days EMA @ 1874. The short term Stochastics Oscillator is at 72 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 55 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also declined for second straight day on Friday and moved towards 10 days Exponential Moving Average @ 24.46. Recently it has moved up with strength during the double bottom formation on daily charts, giving 2 consecutive massive upmoves as it crossed above both 50 and 100 days EMA with good volumes. It has also crossed main target 25.00 this week on closing basis, a major psychological level for silver after almost 2 months of struggle. The primary trend support is near 200 days EMA @ 22.55. The Short term Stochastics Oscillator is at 76 and Relative Strength Index near 60.
Fundamental Report: The Federal Reserve tend to keep their future actions close to their chest revealing little insight as to any upcoming revisions to their aggressive monetary policy that has been in play since March 2022. While they have announced that they plan to implement two more quarter-percent rate hikes by the end of the year, many investors, economists, and analysts believe that next week’s rate hike will mark a conclusion to the aggressive campaign the Fed has undertaken to reduce inflationary pressures. The CME’s FedWatch tool has conveyed an exceedingly high probability of a rate hike this month but is predicting a high probability that the next rate hike could be the last by the Federal Reserve this year. The probability that the Fed will raise rates next week has grown from 96.7% a week ago, to 99.2% yesterday. Today the CME’s probability indicator is now predicting a 99.8% probability that the Fed will raise rates next Wednesday.