Gold Technical Report: Gold prices remained in narrow range yesterday after increasing for the three straight sessions earlier. Currently prices are in between 2 conjunction points. The 10 days Exponential Moving Average and 200 days EMA are meeting near 1906 will mark an immediate support and the meeting point of 50 days EMA and 100 days EMA near 1931 will act as an immediate target as well as next reistance. The short term Stochastics Oscillator is at 56 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 46 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices retraced yesterday after an impressive performance in last 3 days 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 is poised to cross above them near 23.50 which may further boost the rally.The Short term Stochastics Oscillator is at 83 and Relative Strength Index near 57.
Fundamental Report : The markets adopt wait and watch policy as they brace for the speech by Chairman Powell at the Federal Reserve’s annual Jackson Hole economic policy symposium that will conclude this Saturday. Market participants worldwide will be glued to his speech listening intently for any hint that they can glean about the future direction of the Fed’s monetary policy. A majority of analysts are under the assumption that the Fed will raise rates by ¼% one more time this year and that that assumption has been largely factored into current values. Secondly, they will hope to gain clarity as to how long the Federal Reserve will maintain the current elevated rates and pivot to a monetary policy that involves rate cuts rather than rate hikes. There is still a tremendous amount of uncertainty about the future monetary policy of the Federal Reserve. After an era of relentless inflation and worries that the U.S central banks most aggressive interest rate hiking campaign ever seen would end up tanking economies – there are signs that a recession can be avoided, for this year at least. A recent string of data shows that America’s inflation problem is definitively getting better.