Gold Technical Report: Gold prices made a successive upmove yesterday as it has nicely 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 96 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 76 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also moved up parallely and zoomed up as it crossed above 200 days EMA during the session. . Last week it has been on a constant decline mode but yesterday it crossed above 10, 50 and 100 days EMA in a single day. The recent upmoves in the past were capped around 23.40, near 200 days Exponential Moving Average. The Short term Stochastics Oscillator is at 88 and Relative Strength Index near 62.
Fundamental Report: The Gold has shown massive interest in last couple of days. There were no economic data releases from the US for investors to consider on Monday but the prices show tendancy towards new highs as investors looked ahead to Fed Chair Powell testimony on Wednesday and Thursday. Fed Chair Powell has previously wrong-footed the markets. Tight labor market conditions and sticky inflation could leave the door open to another Powell surprise on Wednesday. Also today, ISM Services PMI numbers for February will garner investor interest. An unexpected pickup in service sector activity could reduce bets on a June Fed rate. Economists forecast the ISM Services PMI to fall from 53.4 to 53.0. However, investors must consider the sub-components, including prices and employment. Beyond the numbers, investors must consider Fed speakers. Views on inflation and interest rate cuts need consideration.