Gold Technical Report: Gold continued to play rangebound with positive bias for earlier 3 straight sessions before posting a red candle yesterday. The prices spiked up to May High levels last week 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 92 (it is considered overbought when above 51 and oversold when below 20) and Relative Strength Index (RSI) is at 68 (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 recent Highs near 23.78 after crossing the conjunction point of 100 days EMA and 200 days EMA successfully. The Short term Stochastics Oscillator is at 69 and Relative Strength Index near 56.
Fundamental Report: Gold traders brace for a tumultuous week filled with central bank meetings, the safe-haven asset marks the end of its strongest month since November 2022. The ongoing conflict in ME has pushed spot gold prices to $2,009.29 an ounce, its peak since mid-May. The surge represents an 8% monthly increase, instigated by geopolitical instability. This reflects the market’s continued apprehension about escalating tensions in the Middle East. Meanwhile, the focus remains on the upcoming U.S. Federal Reserve meeting scheduled for Wednesday, which could impact gold prices depending on monetary policy decisions. U.S. Treasury yields have been on a roller coaster, hitting a high of 4.888% for the 10-year Treasury. Investor sentiment is aligned with the expectation that the Fed will likely keep interest rates unchanged. The past month has seen the 10-year Treasury yield soar above 5%, prompting several Fed officials to suggest that current elevated yields are already exerting economic moderation.