Gold Technical Report: Gold marched up further yesterday, as prices bounced back from the support of 10 days Exponential Moving Average. The upmove looks confident after it has reclaimed the psychological mark of 2000 and also the 100 days Exponential Moving Average recently. The recent price swings are contained in the range recorded by extreme points 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 91 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 60 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also moved up parallel as it moved above 10 days EMA during the session . Last week it has been on a constant decline mode and has given up half the gains it made earlier week. The recent upmoves were capped around 23.40, near 200 days Exponential Moving Average. The Short term Stochastics Oscillator is at 43 and Relative Strength Index near 49.
Fundamental Report: The personal consumption expenditures price index, considered the Federal Reserve’s preferred inflation gauge, showed a 0.3% rise in January compared to December. Similarly, the core index, which excludes volatile food and energy prices, saw a 0.4% increase. These figures aligned with economists’ expectations. Also, Initial Jobless Claims increased by 215K in the week ending February 24 according to the US Department of Labor (DoL) on Thursday. The prints came in short of initial estimates and followed a 202K gain in the previous week. In addition, Continuing Claims increased by 45K to 1.905M in the week ended February 17. Further details of the publication revealed that the advance seasonally adjusted insured unemployment rate was 1.3% (from 1.2%) and the 4-week moving average stood at 212.50K, a decrease of 3.000K from the previous week’s revised average. In addition, Continuing Claims increased by 45K to 1.905M in the week ended February 17. This reflects in Gold prices consolidating near four-week highs of $2,051, gathering pace for the next push higher. A renewed weakness in the US Dollar (USD) alongside the US Treasury bond yields is prompting Gold buyers to take a breather ahead of another top-tier US economic data in the ISM Manufacturing PMI due later on Friday.