Gold Technical Report: Gold prices witnessed selling pressure yesterday as it could not cross above the conjunction point of 50 days EMA and 100 days EMA near 1927 and also further slipped down to close below the 10 days EMA @ 1919. Now, next support is near 200 days EMA @ 1910 and major resistance lies near 1951 Horizontal TrendLine touchpoint. 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 44 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also declined parallely crossing below the conjunction point of 50 days EMA and 100 days EMA near 23.50 and then 10 days EMA @ 23.25. The Short term Stochastics Oscillator is at 42 and Relative Strength Index near 38.
Fundamental Report: Gold prices respond to U.S. uncertainties by inching lower on reflecting cautious investor sentiment influenced by imminent U.S. economic and political events. As the U.S. Federal Reserve indicates potential interest rate hikes and with a significant consumer inflation report on the horizon, the precious metal has seen fluctuations. Concurrently, political uncertainties surrounding a potential U.S. government shutdown further impact the financial markets. The ongoing U.S. automakers’ strike, combined with apprehensions regarding the government’s budget resolution for the fiscal year, has kept traders on their toes. Without a concrete agreement by the end of September, a government shutdown is inevitable, bringing with it a slew of economic repercussions. In the gold market, the SPDR Gold Trust, the globe’s leading gold-backed ETF, recorded its lowest holdings since January 2020, signaling reduced investment interest amidst these uncertainties.