Gold Technical Report: Gold drifted down further yesterday for 3rd consecutive day towards 10days Exponential Moving Average after rallying up for earlier 3 straight sessions . 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 75 and oversold when below 20) and Relative Strength Index (RSI) is at 64 (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 46 and Relative Strength Index near 53.
Fundamental Report: The Federal Open Market Committee skipped an interest rate increase again this month and left rates unchanged at the current range of 5.25% to 5.5%. This move marks the clearest sign yet that officials think the risks confronting the global economy have become much more complex. “A range of uncertainties, both old and new, complicate our task of balancing the risk of tightening monetary policy too much against the risk of tightening too little” Faced with a barrage of unpredictable challenges from escalating geopolitical conflict in the Middle East, tightening Oil supply, which could reignite inflationary pressures to growing concerns of a potential credit risk event and of course the possibility of U.S government shutdown in mid-November – the Federal Reserve held its benchmark interest rate at a 22-year high.