Gold Technical Report: From a technical perspective, bulls might now wait for some follow-through buying beyond the $2,065 area, or a one-month top touched on Thursday, before placing fresh bets. Given that oscillators on the daily chart have just started gaining positive traction, the Gold price could then accelerate the momentum towards the $2,078-2,079 region. The subsequent move-up should allow the Gold to aim back to reclaim the $2,100 mark and climb further towards the next relevant hurdle near the $2,120 area.
On the flip side, the $2,042-2,040 strong horizontal resistance breakpoint now seems to protect the immediate downside ahead of the 50-day Simple Moving Average (SMA), currently pegged near the $2,033-2,034 zone. A convincing break below the latter could drag the Gold price to the $2,012-2,010 area en route to the $2,000 psychological mark. Failure to defend the said support levels might shift the bias in favour of bearish traders and expose the 100-day SMA support near the $1,985 region, before the Gold drops to the very important 200-day SMA, near the $1,965 area.
Silver Technical Report: Silver prices also moved up parallely yesterday, 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 78 and Relative Strength Index near 51.
Fundamental Report: The gold markets initially tried to rally during the training session on Thursday but then gave back those gains to start selling off again. Ultimately, gold will wait to see what happens with the Non-Farm Payroll numbers. This fall came despite dovish Fed, as the Federal Reserve’s (Fed) expressed hesitance to cut rate in March. Fed Chair Jerome Powell’s skepticism towards early rate cuts, emphasizing the uncertainty over inflation consistently meeting the 2% target, has tempered expectations for immediate monetary easing. Instead, market focus has shifted towards the possibility of a rate cut in May, contingent on forthcoming economic data. Key indicators, such as January’s ISM Manufacturing PMI and Nonfarm Payrolls (NFP), are awaited, with stronger-than-expected employment and wage growth potentially diminishing prospects for a May rate cut.