Gold Technical Report: Gold prices remained in a narrow range yesterday. It tried to make an intra day high near 100 days Exponential Moving Average @ 1938 but corrected at the close. Main support level is near 200 days EMA @ 1867 and main resistance level is near 50 days EMA @ 1957 to trade stronger. The short term Stochastics Oscillator is at 21 (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).
Silver Technical Report: The silver prices yesterday, caught a support near 200 days EMA @ 22.40 and tried to move towards 10 days EMA @ 23.08. The main resistance level is near 50 Days EMA @ 23.64 to show strength. The Short term Stochastics Oscillator is at 25 and Relative Strength Index near 44.
Fundamental Report: The upcoming speech by U.S. Federal Reserve Chair Jerome Powell on Wednesday is attracting attention as investors seek insights into the potential direction of interest rate hikes. Investors currently estimate a 74% chance of a rate hike in July, with projections of rate cuts from 2024 onwards. Benchmark U.S. yields have rebounded from a near three-week low observed in the previous session. Non-yielding assets like gold, often sought as a safe haven during economic uncertainty, face discouragement due to high interest rates. If the dollar continues its decline and yields slightly increase due to a more accommodative tone from the Fed and positive economic data, gold may encounter obstacles but is expected to maintain relative stability. Gold faces the challenge of reconciling the signs of a deepening slowdown in global economic activity with the hawkish stance of central banks. Traders are balancing concerns about a global economic slowdown with the anticipation of rate hikes and potential risk appetite. The outcomes of economic data releases from both the United States and China will play a significant role in shaping market sentiment in the short term.