Today’s News – gold and silver market 2023

Gold and silver market

Gold prices slid to their lowest point in almost a month on Tuesday. The dip came as investors turned to the dollar due to sluggish Chinese trade data, and market cautiousness prevailed ahead of the impending U.S. inflation figures this week.

Federal Reserve Governor Michelle Bowman’s recent remarks highlighted the potential necessity for more interest rate hikes to counter inflation and meet the Federal Reserve’s 2% target. Similarly, New York Fed Chief John C. Williams indicated that rates might start tapering off in the coming year. Additionally, the recent dovish comments from Philadelphia Federal Reserve Bank President Patrick Harker, suggesting a possible reduction in the policy rate next year, limited the US dollar’s upward movement. However, the downside risk seems contained.

All eyes are on the upcoming U.S. consumer price index data, set to be unveiled on Thursday. According to economists surveyed by Reuters, there’s a projected slight uptick in U.S. inflation for July, possibly hitting an annual rate of 3.3%. The core rate, which excludes volatile components, is expected to remain stable at 4.8%.

From a technical perspective, the SPOT GOLD chart displayed indications of a modest rebound. Yet, significant resistance levels are visible at 1934, 1940, and 1949. Crossing these hurdles is crucial for a sustainable upward trajectory. On the technical front, the Relative Strength Index (RSI) saw a slight rise from 41 to 43 on the daily chart. Meanwhile, hourly charts exhibited moving averages diverging upwards. The Gold Price’s recovery path hinges on achieving a daily close above the resistance zone at $1,942–45, which includes the 50-day moving average (DMA) and the 50% Fibonacci retracement from February to May.

For the day’s trading outlook, the probability of moving towards 1934 and 1940 gains prominence if the 1922 level remains unbreached.