Gold Technical Report: Gold prices witnessed a good rally last week but ended with a mild profit booking on Friday, near the crucial 1800 mark. The medium-term trend looks bullish as it trades above 200 DMA @1795 on Daily charts currently. The Major support standsat 50 DMA @1700. The short-term Stochastics Oscillator is at 95 and the Relative Strength Index is at 72. Both these indicators signal little overbought positions.
Silver Technical Report: The silver prices, parallel with gold prices marched up smartly last week. The prices continue to trade above 200 DMA @21.30. On the downside, significant support is only at 50 DMA @20.30, crossing below which may change the medium-term trend into negative. The Short term Stochastics Oscillator is at 94 and the RSI momentum is near 72. Both these indicators signal little overbought positions.
Fundamental Report: Both gold and silver had stellar performances last week. The precious metals moved on the jobs report and chairman Powell’s speech on Wednesday. By far the largest factor moving the precious metals this week was Wednesday’s speech by Chairman Jerome Powell in Washington. The jobs report could have a nuanced effect on the Federal Reserve’s upcoming rate hikes as well. Last month resulted in 263,000 additional jobs. Although this is the lowest number since December 2020, November’s additional jobs came in well above forecasts. Economists surveyed by Refinitiv predicted that only 200,000 new jobs were added last month. The unemployment rate remained at 3.7%. The report revealed that the labor market continues to be extremely tight, resulting in fewer individuals being hired for holiday employment. The market also factors in the probable decisions of Federal Reserve members as they meet this month for the last FOMC meeting of the year.