Gold Technical Report: Gold prices remained rangebound with upward bias and managed to close above 10 DMA @ 1829. Since 50 DMA @ 1867 is trading over 200 DMA @ 1774, 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 67 and Relative Strength Index is at 44.
Silver Technical Report: The silver prices witnessed a little selling pressure after a small rally of two consecutive days earlier and closed just below the 200 DMA @ 20.94. The medium term trend can be considered up only if the prices move above 100 DMA @ 21.99. The Short term Stochastics Oscillator is at 40 and RSI momentum near 34.
Fundamental Report: It is the monetary policy of the Federal Reserve and its challenge of bringing inflation down that has been one of the primary drivers of price changes in the financial markets across the board. However, investors and traders of gold and silver also need to factor in dollar strength or weakness. Because precious metals are priced globally in U.S. dollars. According to the CME’s FedWatch tool, there is a 73.8% probability that the Fed will raise rates by 25 BPS and a 26.2% that the Fed will be more aggressive with a 50 BPS rate hike. There are some Federal Reserve officials (who can be characterized as the more hawkish of the group) that are still recommending a 50 BPS rate hike this month when the FOMC meeting convenes (March 22-23). However, many analysts including myself believe that the Federal Reserve will stick to its current narrative which is slowing the pace of rate hikes which most likely will include three 25 BPS rate hikes at the next three FOMC meetings. Lastly, it must be noted that critical reports will shape the final decision of the Federal Reserve at their next meeting which is the jobs report on March 10 and the CPI index for February on March 14. These two reports collectively will be the most current data that the Federal Reserve has to make its final decision.