Gold Technical Report:Gold prices bounced back on Friday and closed above 10 days Exponential moving average @ 1952. The immediate support stands at 100 DMA @ 1939 and primary trend support is near 200 days EMA @ 1876. If prices move above 1984 last 3 months TrendLine resistance, it will open room for further advancement upto the major psychological level of 2000 and above. The short term Stochastics Oscillator is at 46 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 51 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also rose parallely but retraced from the intra day high and could not cross 10 days EMA @ 24.42. Recently it has moved up with strength during the double bottom formation on daily charts, giving 2 consecutive massive upmoves as it also crossed a major psychological level of 25.00 on closing basis, for silver after almost 2 months of struggle. The immediate supports are 50 days EMA @ 23.92 and 100 EMA @ 23.60. The primary trend support is near 200 days EMA @ 22.55. The Short term Stochastics Oscillator is at 56 and Relative Strength Index near 52.
Fundamental Report: Gold prices have been soaring, poised for their most substantial monthly gain in four, as a growing belief among market participants indicates that major global central banks might soon reach the end of their current monetary tightening cycles. This sentiment is backed by key inflation reports from the U.S., all pointing to a faster pace of disinflation. Looking ahead, gold prices are set to close the month about 1.8% higher, marking the most significant gain since March. This surge is driven by the mounting expectations that U.S. interest rates may be approaching their peak, causing the dollar to head for its second consecutive monthly decline. Recent data from Friday revealed that annual U.S. inflation rose at its slowest pace in over two years in June. This solidifies expectations that the Federal Reserve is drawing closer to concluding its rapid rate-hiking cycle, which has been the most aggressive since the 1980s. Adding to the positive outlook, more and more European Central Bank policymakers are hinting at a possible end to the ECB’s steepest and longest series of rate increases. As interest rates rise, the appeal of non-interest-paying assets like bullion diminishes, and given that gold is priced in dollars, this has further contributed to its upward trajectory. Gold rally is driven by a convergence of factors, including expectations of a peak in U.S. interest rates, favorable inflation reports, and potential changes in central bank policies. As traders keep a keen eye on developments both domestically and globally, the precious metal’s short-term forecast remains optimistic, signaling a bullish trend ahead.