Gold Technical Report: Gold prices moved up yesterday making a higher high after a massive rally a day before. However, in the second half, it retraced back and registered a green Doji. It has good support near 10 Day Moving Average (DMA) @1985. Both 10 DMA and 50 DMA @1898 are trading over 200 DMA @1787 hence, the medium-term trend looks upwards. The major support stands at 200 DMA below which the trend may turn bearish. The short-term Stochastics Oscillator is at 85 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 66 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: The silver also following suit, marched ahead to make a 10-month high but ended the day with a Doji. It has strong support near the common area of 100 DMA @22.64 and 50 DMA @22.26. The medium-term trend looks bullish as both of these averages are above 200 DMA @21.00. The Short term Stochastics Oscillator is at 91 and Relative Strength Index is near 73.
Fundamental Report: Gold closed the first quarter of 2023 trading just below $2,000 an ounce, but the bullish momentum has spilled over into April. The precious metal has been on an unstoppable run, skyrocketing from the $1,800 level at the beginning of March to above $2,000 an ounce – not once, twice, but four times over the past 10-days – notching up an impressive gain of over 12%, in the past month alone. Gold prices have now risen for a second straight quarter in a row – up over 28% from the November lows of $1,600 an ounce – scoring their biggest back-to-back quarterly gain ever in history. There are plenty of reasons why Gold prices are on the move, but the primary catalyst fuelling the explosive run this week – is a decision by the Organization of the Petroleum Exporting Countries and Russia — also known as OPEC+. On Sunday, Oil prices skyrocketed 8.5% within literally “seconds” of the Monday open, after the oil-producing cartel announced they would cut production by more than 1 million barrels per day – a surprise move, which has thrown further fuel on the inflationary fire and stoked fears of a knock-on effect on the global economy as a whole. The probability that the Federal Reserve will not raise rates at the May FOMC meeting has increased dramatically. According to the CME’s FedWatch tool, there is a 58.7% probability that the Federal Reserve will leave its terminal rates of 4.75% to 5% and begin a period of pausing rate hikes. However, there remains a 41.3% probability that the Fed will raise rates by ¼% in May.