Daily Markets

• Gold prices fell slightly on Monday, sticking to a tight trading range seen over the past three weeks as markets turned cautious ahead of upcoming U.S. consumer inflation data and a Federal Reserve meeting. The yellow metal saw some support last week as some soft labor data pushed up expectations that the Fed will skip a rate hike at the conclusion of a two-day meeting on Wednesday. Inflation data, due on Tuesday, is also expected to factor into the Fed’s decision, given that the central bank’s main goal in this rate hike cycle has been to bring down inflation. While inflation is well below the near 40-year highs seen through 2022, it is still above the Fed's 2% annual target. Gold prices have stuck to a trading range of between $1,930 and $2,000 an ounce over the past three weeks, with uncertainty over the economy and monetary policy offering little cues for a breakout. Gold stands to benefit from any potential pause by the Fed, and is expected to see increased safe haven demand as global economic conditions worsen this year. But given that U.S. interest rates are likely to remain higher for longer, upside in the yellow metal may be limited as returns on debt appear more attractive. Rising interest rates had battered gold prices through 2022, as the Fed enacted its most aggressive pace of monetary tightening since the 2008 financial crisis. But the prospect of a pause in 2023 has kept gold upbeat so far this year.

Gold – XAU

Gold on Monday made its intraday high of US$1972.86/oz and low of $1960.79/oz. Gold is down by 0.238% at US$1960.79/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 1,966-2080 keeping stop loss closing above 2009, targeting 1955-1944-1936 and 1926-1920-1910. Buy in between 1,955-1,900 with risk below 1,900 targeting 1966-1974 and 1981-1990-2000.

Silver - XAG

Silver on Friday made its intraday high of US$24.51/oz and low of US$24.17/oz settled up by 0.115% at US$24.27/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 24.10-18.30, targeting 24.10-24.60 and 25.00-25.90-26.30 with stop loss should be placed on the breakage below 18.00. Sell in between 24.60-27.50 with a stop loss above 27.50; targeting 25.00-24.60-23.60-23.00 and 22.05-21.60-21.00.

Oil - WTI

Crude Ol on Friday made an intra‐day high of US$71.88/bbl, an intraday low of US$70.21/bbl, and settled down by 0.847% to close at US70.43/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 70.10-77.00 with stop loss at 77.00; targeting 69.00-68.40-67.50 and 66.80-65.60. Buy above 69.30-65.60 with risk daily closing below 65.60; targeting 70.10-71.00-72.30 and 73.50-74.10-75.00.

EUR/USD

EUR/USD on Friday made an intraday low of US$1.0742/EUR, a high of US$1.0784/EUR, and settled the day down by 0.779% to close at US$1.0748/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 1.0790-1.1390, targeting 1.0600-1.0550 and 1.0510-1.0470 with stop-loss at daily closing above 1.1032. Buy above 1.0750-1.0525 with risk below 1.0525 targeting 1.0790-1.0840 and 1.1090-1.1150-1.1200

GBP/USD

GBP/USD on Friday made an intra‐day low of US$1.2433/GBP, a high of US$1.2589/GBP, and settled the day up by 0.160% to close at US$1.2578/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 1.2520-1.2200 with a target of 1.2590 and 1.2640-1.2700-1.2745 with a stop loss closing below 1.2200. Sell in between 1.2590-1.2954 with targets at 1.2450-1.2390-1.2320 and 1.2290-1.2250-1.2205 with stop loss should be 1.2954.

USD/JPY

USD/JPY on Friday made an intra‐day low of JPY138.73/USD, an intraday high of JPY139.71/USD, and settled the day up by 0.508% at JPY139.36/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 139.70-142.00 with risk above 142.00 targeting 139.70-138.90-138.50 and 137.90-137.00-136.20. Long positions above 139.00-136.00 with targets of 139.60-140.50-141.00 and 141.60-142.00-143.50 with stops below 133.00.