13 July
Today’s gold and silver market news
Spot Gold prices experienced a significant surge of over 1% on Wednesday following indications of reduced inflation in the United States. This development has sparked optimism among investors that the Federal Reserve might expedite the slowdown of its interest rate hike cycle, deviating from earlier projections.
During June, U.S. consumer prices exhibited modest growth, marking the smallest annual increase in over two years, signaling a continued decline in inflation. The Consumer Price Index (CPI) showed a 3.0% advancement in the 12 months leading up to June, slightly lower than the estimated 3.1% reported by Reuters.
Currently, the market reflects a 91% likelihood of a 25-basis point rate hike by the Federal Reserve later this month. As gold is highly responsive to rising U.S. interest rates, as they amplify the opportunity cost of holding non-yielding bullion, this increase has influenced the surge in gold prices.
Analyzing the four-hour chart, both Spot Gold and Silver have entered the oversold territory. It is anticipated that today’s prices may reach levels of 1950 and 1940.
The four-hour chart’s Average Directional Index (ADX) has reached 40, while the Relative Strength Index (RSI) is above 80. These observations suggest that we might witness profit booking in the near future.
Stay tuned for daily gold and silver market news
– Nitin Kedia
