Gold Technical Report: Gold prices played in a narrow range on Frtiday. During last 11 trading sessions, markets failed to close above 10 Day Moving Average (DMA) @ 1992. Both 10 DMA and 50 DMA @ 1936 are trading above 200 DMA @ 1807 hence, 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 48 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 52 (it is considered overbought when above 70 and oversold when below 30) .
Silver Technical Report: The silver prices also remained rangebound on Friday as it finds difficult to breakthrough the parallel channel of last 10 days. It has a strong support near the common area of 100 DMA @ 23.20 and 50 DMA @ 23.10. The medium term trend looks bullish as both of these averages above 200 DMA @ 21.52. The Short term Stochastics Oscillator is at 52 and Relative Strength Index near 62.
Fundamental Report: Last week, US GDP Annualized eased to 1.1% from 2.0% expected and 2.6% prior but the GDP Price Index inched higher to 4.0% on an annualized basis from 3.9% prior and 3.8% market consensus. Also, Bureau of Economic Analysis released the Personal Consumption Expenditures for March indicating that inflation remains elevated but its advance is slowing down on a month-over-month and year-over-year basis. The PCE only grew 0.1% MoM and 4.2% YoY. That is a 0.8% decrease from the year-over-year numbers in February which came in at 5% and well below economist’s expectations expected to see inflation come in at an annual pace of 4.6%. The core PCE rose 0.3% month over month and 4.6% year-over-year down 0.1% from 4.7% in February. The core PCE excludes energy and food costs and is the preferred measure of inflation by the Federal Reserve. Economists had anticipated that the core PCE would be lower year-over-year with a reading of 4.5%. This report slightly increased the probability by the CME’s FedWatch tool that the Federal Reserve will implement its 10th consecutive rate hike by raising rates by ¼% at the FOMC meeting next week. The probability of a ¼% rate hike rose from 83.9% yesterday to 85%.