Daily Markets

• Gold prices moved in a tight range on Wednesday, stabilizing after a sharp drop in the prior session as markets hunker down ahead of a Federal Reserve interest rate decision while easing fears of a banking crisis spelled lesser safe-haven demand for the yellow metal. Bullion prices were nursing sharp losses from the prior session, as government intervention helped calm fears over a looming crisis in the U.S. and European banking system. This in turn saw markets dump gold at one-year highs, given that the yellow metal’s recent rally was largely driven by safe haven demand. Easing fears of a bank crisis also saw markets begin pricing in a greater possibility that the Fed will remain unwavering in its fight against inflation. The prospect of rising interest rates bodes poorly for zero-yield assets like gold. The losses also saw gold fall from the coveted $2,000 an ounce level, which analysts say will take many more positive cues to reach. Focus is now on the results of the Federal Reserve’s two-day meeting later in the day, with the central bank widely expected to hike rates by 25 basis points, as it moves to curb hotter-than-usual inflation. But the Fed’s outlook on monetary policy will be closely watched amid growing pressure on the economy. The recent collapse of three regional U.S. banks was largely due to their vulnerability to rising interest rates, which could be shared by other medium to small-sized lenders in the country. Fears of the banking crisis fueled a stellar rally in gold and precious metal prices over the past week. Among industrial metals, copper prices retreated after logging four straight sessions of strong gains. Easing fears of a banking crisis were the biggest drivers of the red metal, which had tumbled to two-month lows on concerns over slowing demand.

Gold – XAU

Gold on Tuesday made it’s intraday high of US$1985.07/oz and low of $1935.41/oz. Gold is down by 1.936% at US$1940.38/oz.

Technicals in Focus:

In daily charts, prices are above 200DMA (1809) and breakage below will call for 1790. MACD is above the zero line and histograms are a2lso increasing trend and it will bring an upward stance in the upcoming sessions. RSI is in the overbought region and more upside is expected before it gets stretched. The Stochastic Oscillator is in neutral territory and giving a negative crossover to a bearish stance for intraday trade.

Trading Strategy: Sell on Strength

Sell below 1950-1990 keeping stop loss closing above 1990, targeting 1940-1933-1921 and 1910-1896-1881. Buy in between 1940-1900 with risk below 1900, targeting 1950-1959-1969 and 1980-1990-2000.

Silver - XAG

Silver on Tuesday made its intraday high of US$22.64/oz and low of US21.14/oz settled down by 0.542% at US$22.38/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 100DMA (21.00), breakage above will lead to 21.60. MACD is below the zero line and histograms are decreasing trend and it will bring a bearish stance in the upcoming sessions. RSI is approaching the neutral region, indicating a buy signal for now. The Stochastic Oscillator is in the oversold region and gives a positive crossover to show an upside move for the intraday trade.

Trading Strategy: Buy on Dips

Buy in between 21.90-18.30, targeting 22.60-23.00 and 24.40-25.00-25.90 with stop loss should be placed on the breakage below 18.00. Sell in between 22.60-26.20 with a stop loss above 26.20; targeting 22.05-21.60-21.00-20.05 and 19.90-19.50.

Oil - WTI

Crude Ol on Tuesday made an intra‐day high of US$69.79/bbl, an intraday low of US$66.91/bbl, and settled up by 1.866% to close at US$69.49/bbl.

Technicals in Focus:

On daily charts, oil is sustaining below its 200DMA i.e. 68.50 which is a support level and breakage below will call for 68.40. MACD is above the zero line and histograms are in increasing mode will bring a bullish stance in the upcoming sessions. The Stochastic Oscillator is in the neutral region, giving a positive crossover for confirmation of a bullish stance; while the RSI is in the neutral region and more upside can be expected to reach the overbought region, which is highly probable.

Trading Strategy: Neutral to Sell

Sell in between 69.75-72.00 with stop loss at 72.00; targeting 68.00-67.10-65.80 and 65.00-64.10-63.40. Buy above 68.00-64.50 with risk daily closing below 64.50; targeting 69.90-70.30-70.90 and 71.70-72.50.

EUR/USD

EUR/USD on Tuesday made an intraday low of US$1.0650/EUR, a high of US$1.0707/EUR, and settled the day up by 0.453% to close at US$1.0663/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 50DMA (1.0736), which becomes immediate support, a break below will target 1.0647. MACD is above the zero line and histograms are increasing mode which will bring a bullish view. Stochastic is in overbought territory and giving positive crossovers to the bullish outlook for intraday. 14D RSI is currently in a neutral region and giving no directions to consider right now.

Trading Strategy: Neutral to Sell

Sell below 1.0800-1.0990, targeting 1.0750-1.0700-1.0650 and 1.0590-1.0520-1.0480 with stop-loss at daily closing above 1.1032. Buy above 1.0700-1.0450 with risk below 1.0450 targeting 1.0700-1.0750-1.0810-1.0890 and 1.0950-1.0990-1.1030.

GBP/USD

GBP/USD on Friday made an intra‐day low of US$1.2177/GBP, a high of US$1.2281/GBP, and settled the day down 0.467% to close at US$1.2261/GBP.

Technicals in Focus:

On daily charts, prices are sustaining below 200DMA (1.2112) is becoming a resistance level. 14-D RSI is currently in a neutral region and direction is difficult to predict on RSI bases. The Stochastic Oscillator is in oversold territory and gives a positive crossover to confirm bullish a stance. MACD is above the zero line but histograms are increasing leading to movement.

Trading Strategy: Neutral to Buy

Based on the charts and explanations above; buy in between 1.2100-1.1750 with a target of 1.2120-1.2170-1.2290 and 1.2340-1.2400-1.2440 with a stop loss closing below 1.1650. Sell in between 1.2050-1.2650 with targets at 1.1820 and 1.1900-1.1820-1.1750 and 1.1650-1.1600 with stop loss should be 1.2445.

USD/JPY

USD/JPY on Tuesday made an intra‐day low of JPY131.02/USD and made an intraday high of JPY132.62/USD and settled the day up by 0.875% at JPY132.43/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 200DMA (134.05), which is major support on the daily chart. 14-D RSI is currently in the overbought region and chances of downward are expected based on RSI. MACD is above the zero line but histograms are in decreasing mode which might lead to downward movement. The Stochastic Oscillator is in overbought territory and signaling to buy as it has given a positive crossover to confirm a bullish stance.

Trading Strategy: Neutral to Sell

Sell below 131.10-140.60 with risk above 140.60 targeting 130.60-130.00-129.40 and 128.90-128.00. Long positions above 130.60-128.00 with targets of 131.40-132.00-132.90 and 134.00-134.90-135.50 with stops below 130.00.