Gold Technical Report: Gold prices traded in a narrow range with upward bias yesterday. The upmove was supported by 10 days Exponential Moving Average @ 1912 crossing above 200 days EMA @ 1908. These levels will work as immediate support. The meeting point of 50 days EMA and 100 days EMA near 1936 will act as an immediate target as well as next reistance. The short term Stochastics Oscillator is at 79 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 50 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices fluctuated both sides but ended into a Doji candle on daily charts after an impressive performance last week when it came above 200 days EMA@ 23.17. The 100 days EMA and 50 days EMA are at close conjunction @ 23.58 and 10 days EMA has just crossed above them near 23.76 which may further boost the rally.The Short term Stochastics Oscillator is at 97 and Relative Strength Index near 61.
Fundamental Report : The markets can witness volatility as a host of data like US GDP, Inflation numbers and Non-Farm Payrolls scheduled ahead. Many powerful Wall Street banks have described the current economic climate as “The Golden Age of Trading” as we may see some fundamental changes in international global trade patterns of commodities followed by changing of economic prowess. BRICS expansion on the menu will have a significant impact on who controls the world’s Commodity supply – positioning this global power shift as one of the biggest and most pivotal macro-trading opportunities of this year. Last week, the BRICS, which includes Brazil, Russia, India, China, and South Africa – surprised the markets by inviting Saudi Arabia – the world’s largest Crude Oil producer and Iran, which holds the world’s second-largest Natural Gas reserves – to join the BRICS group of nations. The BRICS also agreed to admit the United Arab Emirates, Argentina, Egypt and Ethiopia to its ranks – propelling global commodities control from 50% to 80% in what is rapidly becoming known as the dawn of “A New World Order”. The inclusion of these new countries, especially Saudi Arabia, the UAE and Iran doesn’t just increase the size of BRICS, but also their overall supremacy in the global Commodities market. As it stands, the current five members account for approximately 52% of global Commodities supply across the metals, energies and agriculture. The new composition, including Saudi Arabia, the UAE and Iran will almost double the BRICS market share – giving them control of nearly 80% of global Commodities output.
As the world faces the real possibility of a “second wave” of inflation – the big question now is will the Federal Reserve skip, pause or hike interest rates again in September? The answer to that question may come from a highly anticipated array of key U.S economic releases, due out this week including; the August Non-Farm Payrolls Report, Second Quarter GDP Figures, ISM Manufacturing PMI – And of course the Fed’s preferred measure of inflation – PCE Inflation Data, which always has the potential to move the markets significantly.