Gold Technical Report: Gold prices yesterday drifted down for second straight day and posted bearish open Marubozu candle. Also since 10 days Exponential Moving Average @ 1941 is poised to cross below 100 EMA @ 1938, it may slip further. The primary trend support is near 200 days EMA @ 1878. If prices move above 1970 which is 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 14 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 43 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices too declined further for second consecutive day. The 10 days EMA @ 23.55 crossed below 100 days Exponential Moving Average @ 23.60 and hence it may slide further. The Primary Trend support is near 200 EMA @ 22.68 below which it will turn bearish. The Short term Stochastics Oscillator is at 9 and Relative Strength Index near 38.
Fundamental Report : Gold prices are lingering within the broad range established last Friday. As the trading world keenly awaits the U.S. Consumer Price Index (CPI) report due tomorrow, the precious metal finds itself in the spotlight. Several economic indicators and statements have been influencing the gold market. Notably, the dollar index has retreated from its peak in the last session, and longer-dated U.S. Treasury yields dipped after Moody’s took the unexpected step of slashing credit ratings for multiple small to mid-sized American banks. This downgrade also rippled through the banking sector, with both U.S. and European bank stocks experiencing a fall. Furthermore, Italy’s sudden decision to impose a 40% windfall tax on its lenders added to the sector’s apprehension. On the U.S. trade front, there’s positive news as the trade deficit saw a considerable contraction in June. This reduction was primarily driven by businesses curbing their foreign capital goods purchases, leading to the lowest import levels in over a year and a half. Given the current economic climate, with a softened dollar, fluctuating yields, and the looming Consumer Price Index report, gold’s short-term outlook appears neutral. Investors are also monitoring emerging market stocks and their currency trends, especially with global interest rates witnessing a unique divergence.