Gold Technical Report: Gold prices made a solid upmove on Friday as it bounced from the support of 10 days Exponential Moving Average and marked a 2 months High to close the week on a positive note. The upmove looks confident as it had reclaimed the psychological mark of 2000 and also the 100 days Exponential Moving Average recently. The recent price swings are contained in the range recorded by extreme points 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 92 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 69 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also moved up parallely as it crossed above 10, 50 and 100 days EMA during the session . Last week it has been on a constant decline mode and has given up half the gains it made earlier week. The recent upmoves were capped around 23.40, near 200 days Exponential Moving Average. The Short term Stochastics Oscillator is at 60 and Relative Strength Index near 51.
Fundamental Report: The Gold has started March with a noticeable uptick, reaching a two-month high driven by growing expectations of a U.S. interest rate cut by June. This upward movement marks gold’s second consecutive weekly gain. Recent economic data has led to a decrease in U.S. Treasury yields, influencing Federal Reserve monetary policy speculations. The retreat of benchmark U.S. 10-year Treasury yields and the dollar index has bolstered gold’s appeal. Critical data points include the University of Michigan’s sentiment index and the personal consumption expenditures (PCE) index. Despite the PCE aligning with expectations, its annual figures still exceed the Fed’s 2% target, indicating persistent inflation. U.S. manufacturing downturn and weak consumer surveys underline the potential for a Fed rate cut. Gold’s prospects look positive, with expectations of easing monetary policy by mid-year. If economic data continues to underperform, gold prices could reach record highs in the next three to four months. Strong central bank purchases of gold are a notable market support. Despite the Federal Reserve’s balance sheet decisions, their focus remains on controlling inflation and meeting their dual mandate. Fed Governor Chris Waller’s recent comments separate balance sheet policies from interest rate decisions, indicating a cautious approach to asset holding reductions.