Daily Report – 28 July 2022

28 July 2022
OTC Market Data
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Gold Technical Report: The gold prices seem to be coming out of bearish grip, after 5 weeks of underperformance. We may witness some fresh value buying supported by 1700 mark.However, since the 50 DMA trading below 200 DMA on daily charts keeps medium term still bearish. Any slippage down the nearest main bottom at $1676 will turn the Main trend negative. On the upside, the immediate resistance for main trend is the Psychological mark of 1800 which is also near 50 DMA. The Short term Stochastics Oscillator is overbought at 80 and RSI momentum is near 45.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3

Silver Technical Report: Silver prices bounced back strongly breaching 19.00 mark which was also a resistance as 20 DMA. We may expect fresh buying support emerging against profit booking here, heralding volatility in prices. Next major resistence will be faced only around 20.48 which is 50 DMA. The Short term Stochastics Oscillator is overbought at 79 and RSI momentum near 46.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3


Fundamental Report: Gold prices are trading higher late in the session on Wednesday, reversing an earlier loss after the U.S. Federal Reserve announced a widely expected rate hike and Fed Chair Powell downplayed concerns over a recession. The market was also boosted by a dip in Treasury yields and a weaker U.S. Dollar. At 19:33 GMT, Comex gold was trading $1736.00, up $20 or +1.14%. The SPDR Gold Shares ETF (GLD) is at $161.69, up $1.65 or +1.03%. The Fed raised its benchmark overnight rate by 75 basis points as expected, and Fed Chairman Jerome Powell made comments that suggested central bank policymakers could slow the pace of rate increases at some point. The second straight 75 basis point rate hike from the Fed was broadly in line with what economists were expecting, as the central bank attempts to curb inflation while navigating a backdrop of slowing growth. The rate hike was likely priced into gold, but comments from Powell that left the door open about the size of the rate move at its next meeting in September were interpreted as dovish, encouraging weak gold short-sellers to cover their positions. In addition, the Fed Chair said he does not believe the U.S. economy is in a recession, given a “very strong labor market.”

In essence, for the first time in any press conference this year, the chairman expressed a slightly more dovish tone than previously expressed regarding rate hikes. While he continued to toe the line that all future decisions will be data-dependent, he added for the first time since the Fed began to raise rates that the Federal Reserve feels it is ‘likely appropriate to slow increases at some point. That being said, he offered no real insight as to a timeline of when this might occur. With the second quarter GDP report coming out tomorrow and advanced estimates by the Atlanta Federal Reserve predicting an economic contraction of 1.6%, Chairman Powell put a spin on the current economic outlook. “I do not think that the U.S. is currently in a recession, and the reason is there are just too many areas of the economy that are performing too well. To be sure, growth is slowing for reasons that we understand. Growth was exceptionally high last year, 5.5%. We would have expected growth to slow. There’s also more slowing going on now.” The chairman did add that preliminary GDP numbers should be taken with a grain of salt.

Key US Economic Reports & Events
Advance GDP q/q
4:30 PM
Unemployment Claims
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