Daily Report – 28 July 2023

28 July 2023
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
1982
1942
1945
1972
-28.00
-1.42%
Silver
25.16
24.02
24.13
24.92
-0.79
-3.17%

Gold Technical Report:Gold prices yesterday, declined rapidly breaching 10 days Exponential moving average @ 1958. It further breached and closed below 50 days EMA @ 1951 after 10 sessions. The immediate support stands at 100 DMA @ 1936 and primary trend support is near 200 days EMA @ 1875. If prices move above 1984 last 3 months TrendLine resistance, it will open room for further advancement upto the major psychological level of 2000 and above. The short term Stochastics Oscillator is at 56 (it is considered overbought when above 80 and oversold  when below 20) and Relative Strength Index (RSI) is at 50 (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
1875
1900
1936
1952
1984
2000
2033

Silver Technical Report: Silver prices also fell down following the suit and closed below 10 days EMA @ 24.48. Recently it has moved up with strength during the double bottom formation on daily charts,  giving 2 consecutive massive upmoves as it also crossed a major psychological level of 25.00 on closing basis, for silver after almost 2 months of struggle. The immediate supports are 50 days EMA @ 23.83 and 100 EMA @ 23.57. The primary trend support is near 200 days EMA @ 22.63. The Short term Stochastics Oscillator is at 64 and Relative Strength Index near 51.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
23.57
23.83
24.00
24.22
24.51
24.83
25.00

Fundamental Report: The The real Gross Domestic Product (GDP) of the US expanded at an annualized rate of 2.4% in the second quarter, the US Bureau of Economic Analysis’ (BEA) first estimate showed on Thursday. This reading followed the 2% growth recorded in the first quarter and surpassed the market expectation of 1.8% by a wide margin. The GDP Price Index in the second quarter declined to 2.6% from 4.1% in the first quarter, while the Core Personal Consumption Expenditures dropped to 3.8% from 4.9% in the same period. According to the US Department of Commerce, in seasonally adjusted term Durable Goods Orders jumped 4.7% on a monthly basis to reach $302.5bn. Meanwhile, the latest data published by the US Department of Labor (DOL) showed that Initial Jobless Claims decreased by 7,000 to 221,000 in the week ending July 22. The US Dollar gathered strength on upbeat GDP reading and the US Dollar Index was last seen posting small daily gains at 101.12. Earlier this week, 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 took the fed funds rate which is used to set the prime rate to its highest level since 2001 or in 22 years.

Key US Economic Reports & Events
When
Actual
Expected
Previous
Core PCE Price Index m/m
4:30 PM
0.2%
0.2%
0.3%
Employment Cost Index q/q
4:30 PM
1.0%
1.1%
1.2%
Revised UoM Consumer Sentiment
6:00 PM
71.6
72.6
72.6
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