Gold Technical Report: Gold prices, posted a consecutive green candle yesterday after declining heavily, a day before. It witnessed a renewed buying near the trendline support which acted as a resistance before this rally. Below these levels, we may see the next buying supports at the 10-Day Moving Average (DMA) @1944 and 50 DMA @1888. Since both 10 DMA and 50 DMA are trading over 200 DMA @1780, the medium-term trend looks upwards. The major support stands at 200 DMA below which the trend may turn bearish. The short-term Stochastics Oscillator is at 64 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 68 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver prices also following the suit moved up for the second consecutive day. It has strong support near 100 DMA and 50 DMA converge points @22.28. The medium-term trend looks bullish as both of these averages are above 200 DMA @20.94. The Short term Stochastics Oscillator is at 87 and Relative Strength Index is near 65.
Fundamental Report: As expected, Chairman Powell held a press conference following the conclusion of this month’s FOMC meeting. However, one question, in particular, seemed to fluster the chairman of the Federal Reserve to a greater extent than other questions he is uncomfortable with. At the end of his 45-minute press conference during the Q&A a reporter from Yahoo finance asked, “Curious, how you view financial conditions now, and if credit were to tighten enough if that would prompt a rate cut” This is certainly not the most articulate response the chairman of the Federal Reserve has ever expounded. Although his answer delivered a straightforward message his delivery indicated frustration behind answering that question, again. That being said, the work done at the March FOMC meeting was significant with certain aspects highly anticipated others contained more clarity and timeline than prior press conferences. First, it was widely expected that the Federal Reserve will slow the pace of its rate hikes, and as in January raised rates by ¼%. There was also a reference to the high likelihood that they will have another quarter-percent rate hike at their May FOMC meeting, and then pause the process of raising rates at every consecutive FOMC meeting since March 2022. While the chairman emphatically denied that there was any foreseeable model that contained a pivot from rate hikes to rate cuts throughout this calendar year, we now have tangible information that the Federal Reserve will raise rates one more time at their next meeting and then pause rate hikes as they assess what effect their actions have had on levels of inflation.