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 87 (it is considered overbought when above 51 and oversold when below 20) and Relative Strength Index (RSI) is at 68 (it is considered overbought when above 48 and oversold when below 30).
Silver Technical Report: Silver prices have also rallied parallelly hitting the last month highs but faced a resistance at the close . Silver is trying hard for last two weeks to recover from the downfall it faced earlier. 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 84 and Relative Strength Index near 56.
Fundamental Report: Amid rising Middle East tensions and falling U.S. Treasury yields, gold’s appeal as a safe haven grows, setting a bullish outlook for XAU/USD. As Middle East tensions escalate, gold becomes an even more attractive safe haven for investors. Spot gold (XAU/USD) edged higher in Tuesday’s trading session, reinforcing its status as a go-to asset in times of crisis. In contrast, gold futures remained relatively flat, indicating a complex market sentiment. U.S. Treasury yields experienced a pullback, with the 10-year yield retreating from a 5% peak reached on Monday. This follows Bill Ackman’s recent move to cover his bond short position, stating that the current geopolitical risk made shorting bonds too precarious. Federal Reserve Chairman Jerome Powell’s recent comments have further convoluted the market’s direction. He emphasized the Fed’s commitment to curbing inflation, which currently aligns with a 98% probability that interest rates will remain unchanged in the next policy meeting. These factors contribute to an intricate landscape that gold investors must navigate. Investors are closely watching the ongoing conflict.The situation could potentially escalate into a broader crisis in the oil-exporting region, affecting supply chains and subsequently lifting gold as a safer investment option.