Gold Technical Report: Gold prices moved up yesterday after a four days continuous streak of selling earlier and managed to touch 10 DMA @1829. The selling pressure that started at the start of Feb month when Gold shed almost 100 dollars in 2 consecutive days, continued almost throughout the month. Since 50 DMA @1869 trades over 200 DMA @1776, the medium-term trend looks upwards. The major support stands at 200 DMA below which the trend may turn bearish. The short-term Stochastics Oscillator is at 32 and Relative Strength Index is at 41.
Silver Technical Report: The silver prices, too following Gold, bounce up after the downfall of four consecutive days and closed just below the 200 DMA @20.94. The medium-term trend can be considered up only if the prices move above 100 DMA @21.95. The Short term Stochastics Oscillator is at 16 and the RSI momentum is near 34.
Fundamental Report: The gold price is building on its previous recovery mode, advancing for a third straight day this Wednesday while moving away from the weakest level in two months at $1,805. Investors now await the United States ISM Manufacturing PMI data for fresh trading impetus. The gold price has managed to regain the $1,830 on its road to recovery, sitting at the highest level in four trading days. The upside bias in the Gold price remains intact, as the United States Dollar has entered a consolidative mode after reaching seven-week highs. The recent series of mixed United States economic data have led the market to reprice the hawkish US Federal Reserve expectations, especially after the headline US Durable Goods Orders sank 4.5% in January, which sparked concerns over a potential ‘soft-landing’. The February US Conference Board Consumer Confidence Index declined to 102.9 from 106 0 in January (revised from 107.1). Next of relevance remains the United States official and ISM Manufacturing PMI data, which will shed more light on the strength of the US economy, impacting the Fed rate hike expectations. The headline US ISM Manufacturing PMI is seen higher at 48.0 in February vs. 47.4 previous while the Prices Paid sub-index is also likely to edge higher to 45.0. The New Orders Index will likely increase to 43.7 vs. 42.5. The Gold price recovery is into being despite the hawkish European Central Bank (ECB) peak rate expectations, which keeps the EUR/USD pair underpinned, limiting the upside in the US Dollar. Inflation rebounded in France and Spain on Tuesday and raised bets for an ECB terminal rate of 4.0% this year as against expectations of a 3.75% terminal rate seen just a week ago. Therefore, the focus will also remain on the German inflation data for the ECB repricing ahead of the Eurozone inflation data due this Thursday.