Gold Technical Report: Gold declined a bit on the last trading day of the year but generally remained within the week’s trading range. Earlier it had struggled and come out of upper range maintained by the market for earlier few sessions, holding support near 10 days Exponential Moving Average strongly. Recently 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 84 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 63 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices declined for last 2 days of the year amidst thin trading during Xmas holiday season and closed below the support of 10 days Exponential Moving Average after holding it for last 2 weeks. Earlier in December, it displayed robust upmove as it forcefully crossed above all 50,100 and 200 days Exponential Moving Average on closing basis in a single day. It has started decline earlier on massive profit booking after it hit 25.88 intra day high which now becomes the next target if rally sustains. The Short term Stochastics Oscillator is at 48 and Relative Strength Index near 51.
Fundamental Report: The gold prices have seen remarkable ups and downs throught the year and as 2024 begins, Dollar weakness has been a prevalent feature in recent gains in both gold and silver. Dollar Index falls below 101 and also geopolitical tensions remain elevated. Dollar weakness has been a prevalent feature in recent gains in both gold and silver. However, investors might witness the dollar falling to a much greater extent in the upcoming months as a result of a decision by Russia and Iran to trade between themselves in their local currencies instead of the US dollar. Recent gains fall on the back of severe dollar weakness, the continuation of geopolitical unrest in Ukraine, the Middle East, and a new announcement by Russia and Iran, but more on that little bit.Multiple news sources including Reuters News announced that Russia and Iran have finalized an agreement to not use the dollar and instead use their local currencies between themselves. This was announced by Iran’s state media on Wednesday. Russian and Iranian banks will now use infrastructure, including non-SWIFT Interbank systems, to complete their trade transactions. This financial trend began this year and is focused on a de-dollarization movement. Multiple countries have been working to reduce the importance and use of the US dollar in international trade. These countries include Brazil, Malaysia, China, and India. It seems their endgame is to set up alternative trade channels that would not utilize what has been the worldwide reserve currency since World War II; the US dollar.