Gold Technical Report: Gold moved up further yesterday with strong buying crossing 2050 mark on intra day basis. The prices remained buoyant throughout last week continuing the trend of earlier week. It has maintained the support of 10 days Exponential Moving Average and have crossed above the 2000 mark convincingly. The short term Stochastics Oscillator is at 93 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 71 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also moved up parallely and looking confident after crossing 25.00 mark. Near the day high it witnessed profit booking but managed to close above 10 days Exponential Moving Average. If this strength persists, it can try to reach May Highs of 26.00 mark as a new target. The Short term Stochastics Oscillator is at 93 and Relative Strength Index near 71.
Fundamental Report: Gold approached 7-month high on economic data anticipation, Fed rate cut prospects, and dollar’s decline, boosting its bullish appeal. Investors eagerly await the U.S. personal consumption expenditure data, set for release at 13:30 GMT on Thursday, to gauge signs of economic deceleration. Governor Christopher Waller, a voting member of the Federal Reserve who alluded to the potential for the Federal Reserve to begin its cycle of cutting rates as early as the second quarter of next year provided that recent declines in inflation will continue as the Fed gets closer to its 2% inflation target. As a more hawkish Federal Reserve official, his statement about rate cuts carries significant weight in that he would typically not be the first person to be on record putting a more concrete timeline to when the Federal Reserve will begin a series of rate cuts.