Gold Technical Report: Gold continued the upwards march for third straight session after a red DOJI candle signifying indecision posted on Friday. The movement is supported by 50 and 10 days Exponential Moving Average. Last month 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 71 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 54 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices witnessed profit booking and ended with consecutive red candle yesterday, but carefully managing the support near 10 days EMA for close. The upmove was capped around 23.40 where all 50,100 and 200 days Exponential Moving Averages are merging. The Short term Stochastics Oscillator is at 68 and Relative Strength Index near 47.
Fundamental Report: Gold markets underwent rapid movements as the combination of the Federal Reserve’s FOMC statement and Chairman Powell’s press conference created wild price swings in gold. Federal Reserve concluded its first open market committee meeting of the year and as anticipated the Federal Reserve decided to maintain its target range for the federal funds rate between 5 ¼% and 5 ½%. Powell confirmed that a rate cut in March is highly unlikely which seems to send multiple financial markets into a tailspin. One month ago the CME’s FedWatch tool predicted that there was a 73.4% probability of a rate cut in March which has now declined to a 35.5% probability that the Fed will initiate its first quarter percent rate hike at the March FOMC meeting.