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 93 (it is considered overbought when above 51 and oversold when below 20) and Relative Strength Index (RSI) is at 71 (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 60 and Relative Strength Index near 53.
Fundamental Report: Reuters News reported that, “The U.S. economy grew at its fastest pace in nearly two years in the third quarter as higher wages from a tight labor market helped to power consumer spending, again defying dire warnings of a recession that have lingered since 2022. Gross domestic product increased at a 4.9% annualized rate last quarter, the fastest since the fourth quarter of 2021, the Commerce Department’s Bureau of Economic Analysis said in its advance estimate of third-quarter GDP growth. Economists polled by Reuters had forecast GDP rising at a 4.3% rate.” Two questions emerge from this report. First, whether the Federal Reserve will raise rates one last time this year at the December FOMC meeting. Secondly how long the Fed will keep interest rates elevated and will it deviate from their current projections of rate cuts which have declined from earlier projections? According to many analysts, today’s GDP report should not have any impact on the short-term monetary policy of the Federal Reserve. According to the CME’s FedWatch tool, the financial markets expect interest rates to remain unchanged at the November FOMC meeting.