Gold Technical Report: Gold witnessed a sharp fall yesterday, and closed below 10 DMA. Till the 50DMA @1844 is trading over 200 DMA @1775, the medium-term trend looks intact. The long-term support stands at 200 DMA below which the trend may turn bearish. The short-term Stochastics Oscillator is at 53 and Relative Strength Index is at 56.
Silver Technical Report: The silver prices, parallel to gold prices came down heavily on profit booking yesterday and but managed to close above support near 50 DMA. The medium-term trend looks up as the prices continue to trade above 50 DMA @23.48. As 50 DMA has crossed above 200 DMA @20.98 on daily charts, gives an indication of Buy on Dip. The Short term Stochastics Oscillator is at 43 and the RSI momentum is near 48.
Fundamental Report: Following several central bank rate hikes, attention shifts to today’s NFP release. The Nonfarm Payrolls (NFP) data will be released by the Bureau of Labor Statistics (BLS) this Friday at 13.30 GMT. The last NFP release is set to show that the United States economy created 185K jobs in January. However, a downside surprise cannot be ruled out after the US ADP private sector payrolls dropped sharply to 106K in January, missing expectations of 178K and against the previous reading of 253 K. Weak US employment data could exacerbate the pain in the US Dollar (USD). The US Dollar has been meandering near 10-month lows against its major rivals, as markets read the latest comments by Federal Reserve (Fed) Chairman Jerome Powell as largely dovish. Earlier, The Fed delivered a quarter-percentage-point rate increase on Wednesday after a year of larger hikes. However, Powell warned of further monetary policy tightening while noting the progress on disinflation, which he said was in its early stages. The FOMC raised its target range for the federal funds rate by 25 bps after its policy meeting. Aside from the headline NFP number, investors will closely examine the Average Hourly Earnings, which could offer fresh insight into the possibility of any further rise in inflationary pressures. The US Average Hourly Earnings are expected to print 4.9% YoY in January, up from 4.6% reported in December while every month, the wage growth is seen unchanged at 0.3% in the reported period.