Gold Technical Report: Gold prices attracted selling pressure yesterday, failing to cross over 200 days EMA @ 1913. 10 days Exponential Moving Average @ 1918, which had crossed below 100 EMA @ 1937 last week, indicating bearishness.. If prices move above 1962 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 12 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 38 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices are on a continuous decline mode from the start of this month and yesterday further declined. The 10 days EMA @ 22.94 had last week crossed below 100 days EMA @ 23.54 indicating bearishness. The prices need to stabilize at these levels which is also low we saw in June from where it moved all the way up to major psychological levels of 25.00. The Short term Stochastics Oscillator is at 11 and Relative Strength Index near 36.
Fundamental Report : Today market participants will gain more insight into the internal thought process of Federal Reserve members when the minutes from last month’s FOMC meeting are released. The Federal Reserve Bank of Atlanta released its latest estimate of GDP growth at 5% today. The Atlanta Fed uses a modeling system they developed called GDPNow, which is based on using available economic data for the current measured quarter. Any further rate hikes by the Federal Reserve will provide more bearish tailwinds for gold evident in today’s continued decline in gold prices. The most recent economic data shows that the economy in the United States is strong and resilient and for the most part has led the Federal Reserve and economists to believe that a recession is not likely. Any aggressive monetary policy of the Fed is no longer a “hard landing” or a “soft landing” but a “no landing”. The meaning behind this acronym is that economic growth that is too strong to allow inflation to fall to the Fed’s target of 2% easily, suggesting that the Fed will need an additional rate hike to secure the proper path to their 2% target. However, according to the CME’s FedWatch tool that will not occur at next month’s FOMC meeting with an 88.5% probability that the Federal Reserve maintain its current interest rate of between 5 ¼% and 5 ½%. We all now are awaiting the release of last month’s FOMC meeting minutes today.