Gold Technical Report: Gold witnessed nervous price action yesterday with tepid profit booking on the back of a very volatile session a day before when as it crossed above 2100 mark upside and also drifted down below 2050 at the close. 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 had crossed above the 2000 mark convincingly. The short term Stochastics Oscillator is at 36 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 57 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also slid further for a second consecutive day. It has started decline on massive profit booking after it hit 25.88 intra day high on Monday. The prices are currently trading below and stuggling to reach 25.00 mark which may signal continuation of bullish trend. Currently its trading 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 39 and Relative Strength Index near 55.
Fundamental Report: As yesterday’s decline can be largely attributed to dollar strength, the wild price fluctuations that began Monday morning had moved gold to its highest value ever, only to retrace by over $100. Gold prices are trying to find a firmer footstep after recent highs, balancing between Fed signals and geopolitical tensions, with key U.S. data. All eyes now turn toward the US ADP Employment Change data slated for release in American trading on Wednesday, which will offer fresh hints on the US labor market condition ahead of Friday’s all-important Nonfarm Payrolls release. Besides, Gold price will also take cues from the prevalent risk trend and its impact on the US Dollar and the US Treasury bond yields. Markets continue pricing about 60% odds of a Fed rate cut in March but investors await Wednesday’s US ADP Employment Change data for placing fresh bets on the US Dollar and Gold price. The ADP is likely to show that the American private sector added 130K jobs in November, up from 113K jobs addition seen in October. A smaller-than-expected increase in the US ADP jobs data could bolster dovish Fed bets, fuelling further downside in the US Dollar. In such a case, Gold price could extend its renewed upside toward $2,050. On the contrary, a souring risk sentiment and strong US jobs report could offer additional support to the ongoing US Dollar recovery, offering a fresh leg lower in Gold price.