Gold Technical Report: Gold continues to play rangebound with positive bias. The prices spiked up to May High levels on Friday breaking the 2000 mark. The technical pullback this month was strong enough to cross above 50 days, 100 days and also 200 days Exponential Moving Average in a single day. On the reverse, the 10 days EMA has also crossed 200 days and 50 days EMA signifying strength. Gold had been on decline throughout earlier but started the rally with a gap up. Prices had reached at 7 moths low and received a much awaited relief. The short term Stochastics Oscillator is at 94 (it is considered overbought when above 51 and oversold when below 20) and Relative Strength Index (RSI) is at 70 (it is considered overbought when above 48 and oversold when below 30).
Silver Technical Report: Silver prices have also rallied parallelly hitting the last month highs but faced a resistance near those levels . Silver is trying hard for last two weeks to recover from the downfall it faced earlier. Next target is near Sep Highs 23.76 after crossing the conjunction point of 100 days EMA and 200 days EMA successfully. The Short term Stochastics Oscillator is at 66 and Relative Strength Index near 54.
Fundamental Report: Investors remain cautiously bullish on gold, influenced by escalating geopolitical tensions and upcoming Fed policy announcements. Recent U.S. economic indicators showed a surge in consumer spending, keeping monthly inflation warm. A Reuters poll suggested that rising inflation, which currently hovers above the Fed’s 2% target, remains a global economic risk into next year. While gold serves as an inflation hedge, an interest rate hike could curb its allure. Despite strong economic data, the Fed is likely to maintain its hawkish tone, particularly given ongoing Middle East tensions. Although experts predict an inevitable interest rate hike, all eyes are on the Fed for its timing. A rate increase could impact borrowing costs but also potentially boost returns on interest-earning assets.