Daily Report – 01 February 2023

01 February 2023
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
1931
1901
1928
1923
+5.00
+0.26%
Silver
23.74
22.95
23.70
23.58
+0.12
+0.51%

Gold Technical Report: Gold yesterday, witnessed a volatile session and ended the day with a green DOJI with a close near 10 DMA around 1930. Till the 50DMA @1837 is trading over 200 DMA @1775,  the medium-term trend looks intact. The long-term support stands at 200 DMA below which the trend may turn bearish. The short-term Stochastics Oscillator is at 46 and Relative Strength Index is at 64.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
1854
1873
1900
1927
1945
1978
2004

Silver Technical Report: The silver prices, witnessed selling pressure yesterday but managed to bounce back smartly to close the session near the intraday high. The medium-term trend looks up as the prices continue to trade above 50 DMA @23.25. As 50 DMA has crossed above 200 DMA @20.98 on daily charts, gives an indication of Buy on Dip. The Short term Stochastics Oscillator is at 54 and the RSI momentum is near 52.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
23.00
23.23
23.47
23.70
24.00
24.18
24.50

Fundamental Report: The market players get jitters before Fed steals the spotlight on Wednesday with markets more or less pricing in a 25 basis-point hike, an action that would move the Federal Funds target range to between 4.50% and 4.75%. 2022 witnessed a mammoth policy tightening schedule out of the Fed, raising 425 basis points from 0.25% to 4.50%. This was the largest bout of policy tightening seen in 40 years, consisting of four eye-watering 75 basis-point hikes during Q3 and Q4. December’s meeting observed that the central bank slowed to a 50 basis-point increase, with this week’s meeting expected to slow once more to 25 basis points. The slowdown in policy tightening is considered warranted given the disinflationary phase the US economy is in—consumer prices are increasing but at a slower pace. The key takeaway from Friday’s PCE inflation index report was that the core PCA index declined in December by 0.3%. The preferred inflation index used by the Federal Reserve was at 4.7% year-over-year in November and declined to 4.4% year-over-year last month. will be critical components used by the Federal Reserve next week and will most likely strengthen the conviction of hawkish Fed officials to maintain their extremely aggressive monetary policy. Thursday is a big one for the BoE and the ECB. The BoE dominates the limelight at midday GMT, widely expected to increase the Bank Rate by 50 basis points, a move that would pull the rate to 4.00%. Annual inflation in the UK remains in double figures. According to the Office for National Statistics (ONS), in the 12 months to December, consumer prices increased by 10.5%, down from November’s 10.7% rate and October’s peak of 11.1%.

Key US Economic Reports & Events
When
Actual
Expected
Previous
ADP Non-Farm Employment Change
5:15 PM
NA
176K
235K
ISM Manufacturing PMI
7:00 PM
NA
48.0
48.4
JOLTS Job Openings
7:00 PM
NA
10.28M
10.46M
Federal Funds Rate, FOMC Statement and FOMC Press Conference
11:00
NA
NA
NA
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