Gold Technical Report: Gold prices retraced on Friday after increasing for the four straight sessions earlier. Currently prices are in between 2 conjunction points. The 10 days Exponential Moving Average and 200 days EMA are meeting near 1907 will mark an immediate support and the meeting point of 50 days EMA and 100 days EMA near 1932 will act as an immediate target as well as next reistance. The short term Stochastics Oscillator is at 65 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 47 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices remained volatile on last day of the week after an impressive performance in preceding sessions when it came above 200 days EMA@ 23.18. The 100 days EMA and 50 days EMA are at close conjunction and 10 days EMA has just crossed above them near 23.66 which may further boost the rally.The Short term Stochastics Oscillator is at 90 and Relative Strength Index near 60.
Fundamental Report : The markets participants focused on every statement as they listened to Chairman Powell’s speech at the central bank’s summer symposium at Jackson Hole Wyoming today. They wanted to gain more insight into two primary components of the Fed’s monetary policy going forward. First, will the Federal Reserve enact any more rate hikes this year? Secondly, what is the path forward in terms of a timeline to begin to cut rates. The Federal Reserve Chairman was resolute in achieving their current mandate – to take inflation to its 2% target. However, Powell’s speech classically avoided a direct response to those questions by focusing on how the Federal Reserve will be data-dependent, saying that the Federal Reserve could raise its benchmark interest rate if inflation veers from its current downward path. He stayed away from answering whether the Fed will raise rates by ¼% one last time this year, or if the Fed will pivot from its current monetary tightening campaign, the question investors were hoping to get answers on the most. Also, when could we expect to see a pivot employing a rate cut was left ambiguous. Powell gave no definitive timeline for the end of Quantitative tightening. Powell’s speech did not have the shock and awe effect of last year’s speech at Jackson Hole where his underlying message was “pain” that would be felt by American consumers. In that way, there has been obvious progress over the last year. But how close we are to seeing the hampering effect of a high cost of borrowing dwindle was unclear.