Gold Technical Report: Gold continued the uptrend for 6th straight day, as it has struggled and come out of upper range maintained by the market for earlier few sessions, holding support near 10 days Exponential Moving Average strongly. Recently it witnessed volatile movements when it crossed above 2100 mark upside on 4th Dec and also drifted down below 1980 on 12th Dec. The short term Stochastics Oscillator is at 97 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 66 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices fluctuated both ways amidst thin trading post Boxing Day as Xmas holiday season continues but managed to maintain level above the support of 10 days Exponential Moving Average. Last to last week it displayed robust upmove as it forcefully crossed above all 50,100 and 200 days Exponential Moving Average on closing basis in a single day. It has started decline earlier on massive profit booking after it hit 25.88 intra day high which now becomes the next target if rally sustains. The Short term Stochastics Oscillator is at 91 and Relative Strength Index near 57.
Fundamental Report: The gold prices are showcasing a steady trend, positioning for the best year in three, driven by various global economic factors and geopolitical tensions. Anticipated U.S. interest rate cuts have strongly supported gold prices. This is evident in the inverse relationship between U.S. Treasury yields and gold prices. Additionally, recent U.S. inflation data and its influence on the Federal Open Market Committee (FOMC) policy have been pivotal. The dollar index is hovering near a five-month low, marking its worst yearly performance since 2020. Concurrently, the Euro is strengthening against the dollar. This decline in the dollar index, coupled with market anticipations of Federal Reserve rate cuts, significantly impacts gold prices. Middle East tensions, particularly the Israel-Hamas conflict and Houthi attacks, have disrupted global trade, enhancing gold’s status as a safe haven. Amidst these geopolitical conflicts and economic uncertainties, gold prices have risen, underscoring its role as a stable investment. Considering the blend of economic data, currency market trends, and Middle East tensions, the short-term outlook for gold remains bullish. The anticipation of U.S. rate cuts and ongoing global uncertainties continue to position gold as an attractive asset for investors.