Gold Technical Report: Gold continues to play rangebound with positive bias. The 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 86 (it is considered overbought when above 51 and oversold when below 20) and Relative Strength Index (RSI) is at 66 (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: Gold is acting clueless as the conflict in the Middle East and key economic indicators leave traders in a standoff. Despite softer U.S. Treasury yields lending some support, the safe-haven allure of the yellow metal seems to be waning. While gold came close to touching the key resistance level at $2,000, profit-taking appears to have put a dent in its recent rally. Market participants are keenly awaiting the U.S. GDP figures for Q3 and the PCE price index due at the end of the week. With the conflict showing signs of a possible ceasefire, the spotlight is back on economic fundamentals. The U.S. Treasury yields have calmed down but are still near 16-year highs, after Bill Ackman’s decision to cover his bond short position, which brings U.S. economic indicators back to the fore. As the Federal Reserve prepares for its next policy meeting, its commitment to tackling inflation remains unshaken. The markets are mostly expecting the interest rates to stay constant. Jerome Powell’s previous statements indicate that the bank may require a slowdown in economic growth to achieve its inflation target sustainably.