Gold Technical Report: Gold prices traded in a narrow range with upward bias yesterday again. The upmove is supported by 10 days Exponential Moving Average @ 1919 crossing above 200 days EMA @ 1909. These levels will work as immediate support. The 50 days EMA and 100 days EMA are at close conjunction near 1936. Prices can rally further if it cross 1951 TrendLine support. The short term Stochastics Oscillator is at 96 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 57 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices moved up further after a naroow range trading for last couple of sessions, extending the rally of last week when it came above 200 days EMA@ 23.23 which will act as a major support now. The 100 days EMA and 50 days EMA are at close conjunction @ 23.60 and 10 days EMA has already crossed above them near 23.81 which may further boost the rally.The Short term Stochastics Oscillator is at 91 and Relative Strength Index near 63.
Fundamental Report : The Gold prices moved up as a result of the release of data revealing declines in the United States consumer confidence as well as job openings. Consumer Confidence fell to 106.1 against expected 116. Also, JOLTS Job Openings slid to 8.83M from previous 9.58M. Both these numbers were seen negative for Dollar by the market. This in turn led to dollar weakness and a lower yield in U.S. Treasuries. Investors are now waiting for the latest data on inflation which will be provided on Thursday, August 31 when the PCE (personal consumption expenditures) price index is released. This will be followed by the nonfarm payroll jobs report on Friday, September 1. Market went skeptical as Powell’s latest speech at the economic symposium in Jackson Hole Wyoming, inferred that a tightening job market presented challenges to tackle their fight against inflation. The challenges of high inflation and a tighter job market combined infer that inflationary pressures will remain elevated for a longer time than previously assumed. Chairman Powell’s speech left the option for more rate hikes on the Federal Reserve’s table. However, the data indicating a decline in job openings has led market participants to assume that the Fed will not continue to raise rates. This assumption is vastly different from the scenario expected after Powell’s speech last Friday.