Gold Technical Report: Gold witnessed rapid and volatile price action yesterday both ways as it crossed below 2100 mark upside and also drifted down below 2050 on heavy profit booking. The prices remained buoyant throughout last week continuing the trend of earlier week. It has maintained the support of 10 days Exponential Moving Average and have crossed above the 2000 mark convincingly. The short term Stochastics Oscillator is at 63 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 59 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also declined on massive profit booking after it hit 25.88 intra day high. The prices are currently trading below and stuggling to reach 25.00 mark which may signal continuation of bullish trend. Currently its holding support near 10 days Exponential Moving Average @ 24.50. If strength persists, it can try to reach May Highs of 26.00 mark as a new target. The Short term Stochastics Oscillator is at 65 and Relative Strength Index near 58.
Fundamental Report: On Monday, Gold prices notched up a new all-time record high for a second day in a row – with spot prices nearing $2,150 an ounce amid growing expectations that the Federal Reserve is done with its aggressive interest rate hiking campaign and will deliver multiple rate cuts next year. Gold has been on a parabolic run since the beginning of October – rallying from near the $1,800 level to a new all-time record high of $2,150 an ounce – scoring an impressive gain of over 16% in the space of two-months. A long list of the world’s most powerful Wall Street banks have described the current economic climate as “The Golden Age of Trading”. According to a recent survey by the World Gold Council, almost 71% of global central banks intend to increase their Gold reserves in the next 12 months, as they continue to grow ever-more pessimistic about the U.S dollar as a reserve currency. That in itself could put “a new floor in prices” and keep Gold elevated well above the key $2000 an ounce level for the foreseeable future. Combine that with a Fed policy pivot in 2024 and the precious metals latest record high of $2,150 an ounce could just be the beginning of what is yet to come. Whichever way you look at it, one thing is clear. The stars appear to be aligning for Gold and the bullish momentum driving prices higher shows no signs of slowing down anytime soon.