Gold Technical Report: Gold prices remained in a narrow range yesterday with a downwards bias. It tried to target 10 days Exponential Moving Average @ 1924 but failed. Main support level is near 200 days EMA @ 1869 and main resistance level is near 50 days EMA @ 1954 to trade stronger. The short term Stochastics Oscillator is at 4 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 34 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver prices slipped downwards after an unsuccessful attempt to cross above 10 days EMA @ 22.98. The main support is near 200 days EMA @ 22.40 and main resistance level is near 50 Days EMA @ 23.57 to show strength. The Short term Stochastics Oscillator is at 28 and Relative Strength Index near 40.
Fundamental Report: The eagerly awaited Federal Reserve Chair Jerome Powell’s speech further cleared the things. According to Powell, we can expect more rate hikes and elevated levels for longer until the high core inflation level diminishes with the data confirming that. We need to see more softening in the labor market according to Chairman Powell. Central banks worldwide vowed to continue to raise interest rates to combat high and persistent core inflation levels. This as some top economic countries see GDP greatly contracting. GDP levels have fallen to 1.2% in the U.S. and Japan and 0.6% in England and the Eurozone. “Although the policy is restrictive, it may not be restrictive enough and it has not been restrictive for long enough.” Traders have factored in the renewed and continued hawkish stance of the Federal Reserve, limiting selling pressure. Chairman Powell signaled that two consecutive 25 basis point rate hikes are not off the table. According to the CME’s FedWatch tool, there is a 79.4% probability of the first of two hikes in July.