Gold Technical Report: Gold prices remained in a narrow range yesterday with a downwards bias. It tried to make an intra day high near 10 days Exponential Moving Average @ 1930 but corrected at the close. Main support level is near 200 days EMA @ 1868 and main resistance level is near 50 days EMA @ 1956 to trade stronger. The short term Stochastics Oscillator is at 12 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 37 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver prices moved upwards , crossed above 10 days EMA @ 23.07. However it could not sustain and slipped at the close. The main support is near 200 days EMA @ 22.41 and main resistance level is near 50 Days EMA @ 23.62 to show strength. The Short term Stochastics Oscillator is at 31 and Relative Strength Index near 44.
Fundamental Report: The Gold prices are hovering near three-month lows as robust US economic data counters its traditional safe-haven appeal. Traders are eagerly awaiting Federal Reserve Chair Jerome Powell’s speech and additional data for insights into potential rate hikes. The dollar strengthened due to strong economic data, pushing gold towards its June-low overnight. Technical factors and profit-taking by bears are also driving the precious metal’s recent movements. Tuesday’s data indicating a resilient economy could signal the need for further Fed rate hikes to combat inflation. According to CME’s Fedwatch tool, investors currently anticipate a 77% chance of a rate hike in July, with potential rate cuts projected from March 2024 onwards. Major US banks also expect a 25-basis-point rate hike. The prospect of higher interest rates dampens investor interest in non-yielding gold, contributing to its recent decline. The Federal Reserve’s upcoming release of minutes from its June 13-14 meeting on July 5 and the Federal Open Market Committee (FOMC) meeting on interest rates scheduled for July 25-26 will be closely monitored by market participants. Additionally, investors will keenly observe the personal consumption expenditure (PCE) price index data for May, among other indicators, which will be published on Thursday and Friday.