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 90 (it is considered overbought when above 51 and oversold when below 20) and Relative Strength Index (RSI) is at 70 (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 68 and Relative Strength Index near 54.
Fundamental Report: Gold is moving cautiously bullish as the conflict in the Middle East and key economic indicators leave traders in a standoff. The levels are just below $2000 as investors wait for key economic reports to be released today and Friday will be critically important to the Federal Reserve’s monetary policy on 30 Oct-1 Nov. On Thursday, the government will release the latest and most recent data on the third quarter GDP. This will be followed on Friday with the latest data on inflation from the BEA (Bureau of Economic Analysis). They will release the PCE (Personal Consumption Expenditure Price Index) for September. Both these will be critically important to the Federal Reserve’s monetary policy. It will shape whether the Fed will raise rates one more time this year or continue its recent position to pause rate hikes. Most importantly, it will help shape the decisions made by the Federal Reserve as to how long it will maintain the current elevated levels of interest next year.