Daily Report – 27 July 2023

27 July 2023
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
1978
1962
1972
1965
+7.00
+0.36%
Silver
25.05
24.50
24.92
24.70
+0.22
+0.89%

Gold Technical Report: Gold prices moved up for second consecutive day after losses in 4 trading sessions earlier and closed above 10 days Exponential Moving Average @ 1964. In the first half of the month it displayed strength as it crossed above 100 DMA @ 1940 and then again, the 50 days EMA @ 1952. If these levels sustain, it will open room for further advancement upto the major psychological level of 2000 and above. Main support level is near 200 days EMA @ 1876.  The short term Stochastics Oscillator is at 85 (it is considered overbought when above 80 and oversold  when below 20) and Relative Strength Index (RSI) is at 61 (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
1940
1952
1976
1988
2000
2033

Silver Technical Report: Silver prices moved up strongly for second straight day breaking earlier 3 days losing streak as it bounced back from intra day low near 10 days Exponential Moving Average @ 24.55. Recently it has moved up with strength during the double bottom formation on daily charts,  giving 2 consecutive massive upmoves as it crossed above both 50 and 100 days EMA with good volumes. It has also crossed main target  25.00 on closing basis, a major psychological level for silver after almost 2 months of struggle. The primary trend support is near 200 days EMA @ 22.64. The Short term Stochastics Oscillator is at 84 and Relative Strength Index near 63.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
24.32
24.60
24.83
25.00
25.28
25.50
25.76

Fundamental Report: The Federal Reserve concluded its July FOMC meeting leaving only three remaining meetings this year. As expected, the Federal Reserve raised rates by ¼% taking its terminal benchmark rate to between 5 ¼% and 5 ½%. Though no surprise there, market remains on alert mode as this is the highest level in last 22 years.This took the fed funds rate (which is used to set the prime rate) to its highest level since 2001 or in 22 years. “We remain committed to bringing inflation back to our 2% goal,” Chair Jerome Powell said in a press conference after the Fed rate hike. “No one should doubt that.” Another predictable statement was that “The Fed would assess additional information on inflation, employment, and economic growth before determining its next step.” As expected, he stressed that the Fed would remain vigilant and keep its options open. Now the focus shifts to the forthcoming statements from European Central Bank President Christine Lagarde Today.

Key US Economic Reports & Events
When
Actual
Expected
Previous
Advance GDP q/q
4:30 PM
2.4%
1.8%
2.0%
Unemployment Claims
4:30 PM
221K
234K
228K
Core Durable Goods Orders m/m
4:30 PM
0.6%
0.1%
0.7%
Durable Goods Orders m/m
4:30 PM
4.7%
1.3%
1.8%
Pending Home Sales
6:00 PM
0.3%
-0.5%
-2.7%
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