Gold Technical Report: Gold tried to recover some lost ground, taking a support of 100 DMA @1936. Also the 10 DMA @1971 crossing below 50 DMA @1990 are making short term trend negative. The only good aspect being these averages are trading above major support at 200 DMA @1830 (below which the trend may turn bearish ) hence, the medium term trend looks upwards. Gold has been facing selling pressure on continuous profit booking after it made a new high around 2080 earlier this month and now almost 130$ below the recent high. The short term Stochastics Oscillator is at 18 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 39 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver prices also climbed up nicely, but hit a resitance 100 DMA @ 23.34. After clearing this level , next target stands at 50 DMA @ 24.36. The medium term trend looks intact as both of these averages above 200 DMA @ 21.96. The Short term Stochastics Oscillator is at 23 and Relative Strength Index near 40.
Fundamental Report: The Gold prices are experiencing a mixed trading session due to a recently reached agreement to temporarily suspend the U.S. debt ceiling, which has caused some uncertainty. Additionally, concerns about higher interest rates for an extended period of time are negatively impacting the demand for gold, which does not generate any interest or yield. It’s worth noting that the U.S. market is closed today for Memorial Day, so trading activity is expected to be relatively low. U.S. President Joe Biden and House Speaker Kevin McCarthy have reached a final agreement on suspending the $31.4 trillion debt ceiling until January 1, 2025. The deal is now set to go to Congress for a vote. With only a few days left before a potential government default, both leaders are working to secure enough votes from Republicans and Democrats to pass the measure. The agreement aims to gather support from the political center, as lawmakers rush to vote before the June 5 deadline to prevent a harmful federal default. President Biden expressed relief at the agreement, emphasizing that it avoids the worst-case scenario of a default. He called on Congress to come together and pass the bipartisan agreement swiftly. The compromise includes spending cuts, which may face scrutiny from some lawmakers. However, both Biden and McCarthy expressed confidence that the plan will be successful. The coming days will determine whether Washington can once again narrowly avoid a default or if the global economy will face a potential crisis.