Gold Technical Report: Gold witnessed some nervous price action yesterday and crossed below 2050 mark on profit booking. The prices remained buoyant throughout last week continuing the trend of earlier week. It has maintained the support of 10 days Exponential Moving Average and have crossed above the 2000 mark convincingly. The short term Stochastics Oscillator is at 91 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 69 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices further moved up smartly and looking confident after crossing 25.00 mark. Near the day high it witnessed profit booking but managed to close above 10 days Exponential Moving Average. If this strength persists, it can try to reach May Highs of 26.00 mark as a new target. The Short term Stochastics Oscillator is at 94 and Relative Strength Index near 74.
Fundamental Report: Inflation in the US, as measured by the change in Personal Consumption Expenditures (PCE) Price Index, was 3% on a yearly basis in October, the US Bureau of Economic Analysis reported on Thursday. This reading came in line with the market expectation and was below 3.4% of the previous month. The annual Core PCE Price Index, the Federal Reserve’s preferred gauge of inflation, rose 3.5%, matching expectations and a slightly softer pace than the 3.7% increase recorded in September. On a monthly basis, the PCE Price Index remained flat and the Core PCE Price Index 0.2%. Other details of the report revealed that Personal Spending increased by 0.2% on a monthly basis in October, while Personal Income also rose by 0.2%. Gold has approached 7-month high but trades cautiously as investors await Fed Chair Powell’s speech tonight for any possible hints about further directions.