Gold Technical Report: Gold declined further in continuation of the new year trend and closed below support of 10 days Exponential Moving Average first time in last 15 trading sessions. Earlier it had struggled and come out of upper range maintained by the market for earlier few sessions looking poised to touch 2100 again. 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 43 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 54 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices declined for fifth straight trading session, closing below the support of 10 days Exponential Moving Average and further forcefully crossing below all 50,100 and 200 days Exponential Moving Average on closing basis in a single day. Thus it It has fully reversed the upmove of 13th Dec when it had crossed above all these averages to later hit 25.88 intra day high which now becomes the next target. The Short term Stochastics Oscillator is at 9 and Relative Strength Index near 38.
Fundamental Report: The US Dollar eases from two-week highs after FOMC minutes. Hawkish Federal Open Market Committee (FOMC) minutes from the December meeting favored the Greenback to hold its momentum. The Fed’s dovish stance in its last 2023 meeting, welcoming cooling inflation and dismissing rate hikes in 2024, was positively received by markets that dumped the US Dollar in the last session. This comes after the dovish bets on the Federal Reserve (Fed) eased somewhat following the release of the Institute Supply Management (ISM) Manufacturing PMI for December and the JOLTs Job Openings data for November. However, despite investors anticipating high odds of rate cuts in March and May 2023, incoming data could modify these expectations and focus shifts to December labor reports. The Federal Open Market Committee (FOMC) minutes saw the policymakers acknowledging that the policy rate might be reaching its peak but considering keeping rates at restrictive levels for a longer period. Regarding protections, all members see cuts by the end of 2024. Market speculation, as inferred from the CME FedWatch Tool, suggests that the odds of rate cuts in March and May have eased but are still high. A hold in January is priced in. Market participants are eagerly awaiting reports such as US Nonfarm Payrolls, Average Hourly Earnings, Unemployment Rate, and the Automatic Data Processing Inc. (ADP) Employment Change from December to continue placing their bets on the Fed.