Daily Report – 26 May 2023

26 May 2023
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
1964
1938
1940
1956
-16.00
-0.82%
Silver
23.12
22.68
22.71
23.04
-0.33
-1.43%

Gold Technical Report: Gold slipped further yesterday, as selling continued after it crossing below 10 DMA @1971. Also the 10 DMA crossing below 50 DMA @1991 are making short term trend negative. The only good aspect being these averages are trading above major support at 200 DMA @1829 (below which the trend may turn bearish ) hence, the medium term trend looks upwards. Gold has been facing selling pressure on continuous profit booking after it made a new high around 2080 earlier this month and now almost 130$ below the recent high. The short term Stochastics Oscillator is at 24 (it is considered overbought when above 80 and oversold  when below 20) and Relative Strength Index (RSI) is at 40 (it is considered overbought when above 70 and oversold when below 30).

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
1900
1919
1935
1950
1980
2000
2028

Silver Technical Report: The silver prices also came down yesterday, as weakness prevails after it crossing below 100 DMA @ 23.34. This level will now act as a resistance before prices move above 50 DMA @ 24.32. The medium term trend looks intact as both of these averages above 200 DMA @ 21.95. The Short term Stochastics Oscillator is at 16 and Relative Strength Index near 35.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
22.16
22.57
22.74
23.00
23.12
23.36
23.52

Fundamental Report: The rise in the value of the safe-haven U.S. dollar, reaching its highest level since mid-March, contributed to a decline in gold’s attractiveness for international buyers. While gold had shown signs of recovery following a previous sell-off, the persistent strength of the dollar and increased U.S. Treasury yields imposed limitations, outweighing the usual demand for safe-haven assets associated with the U.S. debt ceiling concerns. Fitch Ratings added further pressure on gold prices by placing a negative rating watch on the United States’ AAA rating. The agency cited risks related to the ongoing debt ceiling negotiations, raising concerns that the government might fail to meet certain payment obligations. However, Fitch remained optimistic about a resolution being reached before the X-date. Additionally, higher Treasury yields influenced gold’s decline. U.S. Treasurys experienced an upward trend as investors analyzed the potential implications of the ongoing debt ceiling negotiations and the uncertain outlook for interest rates. Progress in the negotiations on Wednesday raised hopes for a resolution before the June 1 deadline, which Treasury Secretary Janet Yellen emphasized as crucial to avoid severe economic consequences.

Key US Economic Reports & Events
When
Actual
Expected
Previous
Core PCE Price Index m/m
4:30 PM
0.4%
0.3 %
0.3%
Durable Goods Orders m/m
4:30 PM
1.1%
-1.0%
3.2%
Revised UoM Consumer Sentiment
6:00 PM
59.2
58.2
57.7
The information contained in these reports is gathered from reputable news sources and is not intended to be used as investment advice. Please note that ISA BULLION DMCC makes no warranty, expressed or implied, as to the accuracy or completeness of the information and opinions herein. No responsibility or liability is accepted for any loss or damage howsoever arising that you may suffer as a result of this information and any and all responsibility and liability is expressly disclaimed by ISA BULLION DMCC or any of them or any of their respective directors, partners, officers, affiliates, employees or agents ISA BULLION DMCC is registered & licensed as a FREEZONE Company under the Rules & Regulations of DMCCA.