Gold Technical Report: Gold started the week on a weaker note, taking a clue from Friday’s market action which hinted at downfall after 4 continuous bullish sessions earlier. It also crossed and closed below 10 days Exponential Moving Average and just above 50DMA. The recent 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 43 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 48 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also moved down parallely opening below 10 days EMA and drifted down further. The upmove was capped around 23.40 last week where all 50,100 and 200 days Exponential Moving Averages are merging. The Short term Stochastics Oscillator is at 40 and Relative Strength Index near 43.
Fundamental Report: The first rate cut is gearing up to be a huge market-moving spectacle! Just about every corner of the economy was affected as the Federal Reserve raised interest rates from zero in early 2022 to 5.25% – 5.50%, the level they have been at since July 2023. In a “60 Minutes” interview on Sunday, Fed Chairman Jerome Powell said that the Federal Reserve’s December 2023 forecasts for three interest rate cuts this year remain the same. In December, participants in a meeting held by the Federal Open Market Committee predicted three cuts for 2024, bringing interest rates down to 4.6%. Traders will be scrutinizing every word from every Fed official for fresh clues into the central banks future monetary policy plans and most importantly, confirmation of when the first rate cut will come.