Gold Technical Report: Gold witnessed a sharp fall on the last 2 trading days in the last week, and now trading below 10 DMA. Till the 50DMA @1846 is trading over 200 DMA @1776, the medium-term trend looks upwards. The long-term support stands at 200 DMA below which the trend may turn bearish. The short-term Stochastics Oscillator is at 34 and Relative Strength Index is at 47.
Silver Technical Report: The silver prices, parallel to gold prices came down heavily on the last 2 trading days in the last week and closed below support near 50 DMA @23.33. The medium-term trend looks up as the prices continue to trade above 100 DMA @21.61. As 50 DMA trades above 200 DMA @20.96 on daily charts, gives an indication of Buy on Dip. The Short term Stochastics Oscillator is at 31 and the RSI momentum is near 39.
Fundamental Report: Following the strong NFP numbers revealed on Friday, it was confirmed that the Federal Reserve was correct in its resolve to fight inflation and that the US economy is strong enough to withstand the Federal Reserve’s elevated rates. The indications for this already came in on August 25, 2022, in Jackson Hole Wyoming for the annual economic policy symposium hosted by the Federal Reserve Bank of Kansas City. Chairman Jerome Powell presented the keynote speech in which he said, “While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses.” The chairman conveyed this same message exactly one year earlier at the prior Jackson Hole Economic Symposium. The chairman repeated this message on multiple occasions underscoring the Federal Reserve’s resolve to “do whatever it takes” to reduce inflation that had spiraled to a 40-year high. Economists had predicted that the US employment growth would accelerate by approximately 180,000 new jobs being added in December, the actual numbers were that an additional 517,000 new positions were added well above expectations. The strong numbers revealed confirmed that the Federal Reserve was correct in its resolve to fight inflation and that the US economy is strong enough to withstand the Federal Reserve’s elevated rates.