Gold Technical Report:Gold prices remained rangebound with positive bias and closed above 10 days Exponential moving average @ 1956. The immediate support stands at 100 DMA @ 1940 and primary trend support is near 200 days EMA @ 1875. 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 48 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 52 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also rose parallely and crossed above 10 days EMA @ 24.51. 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 @ 23.97 and 100 EMA @ 23.64. The primary trend support is near 200 days EMA @ 22.66. The Short term Stochastics Oscillator is at 59 and Relative Strength Index near 55.
Fundamental Report: As we step from July to August, we see stickier-than-expected inflation, a brewing global credit squeeze and rapidly rising recession risk are now emerging and the macro themes driving the financial markets. There is no denying that the last 17 months have been monumental for monetary policy with central bankers across the world ramping up their fight against stickier-than-expected inflation and raising rates by a record-breaking combined total of 3,840 basis points, so far in this tightening cycle. Last week, policymakers at the Federal Reserve voted to hike interest rates by another 25 basis points – to the highest levels seen in over 22 years. As of today, the U.S holds more than $31.5 trillion in National Debt, which is just above the recently suspended debt ceiling of $31.4 trillion. And the interest repayments on that debt are close to hitting $1 trillion for the first time ever in history. Put another way, that’s more than the U.S Education, Veterans’ Benefits and National Defence Budget combined. If the Fed continues to hike, that would ultimately increase the odds of a U.S debt crisis worsening further and slipping out of checks.