Daily Report – 31 August 2023

31 August 2023
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
1949
1934
1942
1937
+5.00
+0.26%
Silver
25.02
24.52
24.65
24.73
-0.08
-0.32%

Gold Technical Report: Gold prices continued the rally and posted third green candle in a row. The upmove started when 10 days Exponential Moving Average @ 1922 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 1933 and prices closed above it yesterday and also inched towards 1951 TrendLine resistance. 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 61 (it is considered overbought when above 70 and oversold when below 30).

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
1884
1909
1922
1945
1951
1966
1989

Silver Technical Report: Silver prices moved up further in the former part of the session towards the psychological mark of 25.00 but then fizzled to close in red. It has been on upswing from 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 around same levels near @ 23.68 and 10 days EMA has already crossed above them near 24.12 which may further boost the rally.The Short term Stochastics Oscillator is at 88 and Relative Strength Index near 62.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
24.00
24.28
24.48
24.60
24.84
25.00
25.29

Fundamental Report : The ADP released its monthly private sector employment report which revealed that an additional 177,000 jobs were added in August and that personal income was up 5.9% when compared to the previous year. This report comes after the jobs opening report by the Bureau of Labor Statistics which showed 8.3 million positions remained unattended. The report also revealed that the number of individuals who quit (quit rate) has slowed to a level of 2.3%, to levels not seen since before the pandemic. The  report came in well under expectations and much softer than the previous month of July. The July ADP report for June was revised upward recently, revealing that 371,000 new jobs were added. The ADP’s monthly report is released on Wednesdays, 2 days before the release of the government’s nonfarm payroll report. These two reports will occur before and after today’s PCE index report.Currently, it is widely accepted that the Federal Reserve will leave their terminal interest rates (fed funds) unchanged at the September FOMC meeting. According to the CME’s FedWatch tool, there is a 90% probability that the Federal Reserve will maintain its interest rate between 5 ¼% and 5 ½% and a 10% probability that the Fed will raise rates by ¼%.

Key US Economic Reports & Events
When
Actual
Expected
Previous
Core PCE Price Index m/m
4:30 PM
0.2%
0.2%
0.2%
Unemployment Claims
4:30 PM
228K
236 K
230K
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