Gold Technical Report: Gold prices remained in a narrow range yesterday, hovering around the10 Day Moving Average (DMA) @1968. Both 10 DMA and 50 DMA @1892 are trading over 200 DMA @1783 hence, the medium-term trend looks upwards. The major support stands at 200 DMA below which the trend may turn bearish. The short-term Stochastics Oscillator is at 44 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 60 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver prices following the suit, also played rangebound and registered a DOJI candle. It has strong support near the common area of 100 DMA @22.48 and 50 DMA @22.16. The medium-term trend looks bullish as both of these averages are above 200 DMA @20.96. The Short term Stochastics Oscillator is at 78 and Relative Strength Index is near 67.
Fundamental Report: Gold surged above the $2,000 psychological level last week following the collapse of two U.S. lenders earlier this month. However, the metal has since retreated as authorities intervened with rescue measures, including UBS’ takeover of ailing Credit Suisse and First Citizens Bancshare’s acquisition of failed Silicon Valley Bank. Nonetheless, gold has remained resilient, buoyed by strong inflows into ETFs, including the largest gold-backed ETF, SPDR Gold Shares. With the Fed now making interest rate decisions on a meeting-to-meeting basis, investors are keeping an eye on Friday’s U.S. Personal Consumption Expenditures data, the Fed’s preferred inflation measure, for further policy clues. Markets are pricing in a 60% chance of the Fed keeping interest rates unchanged at its May meeting. However, with inflation concerns still present, caution remains. Investors are also monitoring economic data releases and speeches from Fed officials.
On Thursday, investors will watch for economic data on weekly jobless claims and the gross domestic product. And on Friday, financial markets will focus on key inflation figures from across the globe, speeches by Fed officials, and the U.S Senate hearings on Silicon Valley Bank. Although some normality seems to be returning to markets, this could easily be disrupted by negative news or data that rekindle concerns not only over the banking sector but also inflation.