Gold Technical Report: Gold prices moved up for all five trading days last week, with a remarkable upswing on Friday where it bounce up from an intraday low near 10 DMA @1830. Since 50 DMA @1868 is trading over 200 DMA @1775, 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 82 and Relative Strength Index is 51.
Silver Technical Report: The silver prices too, following suit bounced back from the 200 DMA @20.92 and posted a smart move. The medium-term*8/95- trend can be considered up only if the prices move above 100 DMA @22.00. The Short term Stochastics Oscillator is at 60 and the RSI momentum is near 40.
Fundamental Report: It is the monetary policy of the Federal Reserve and its challenge of bringing inflation down that has been one of the primary drivers of price changes in the financial markets across the board. However, investors and traders of gold and silver also need to factor in dollar strength or weakness. Because precious metals are priced globally in U.S. dollars. According to the CME’s FedWatch tool, there is a 73.8% probability that the Fed will raise rates by 25 BPS and a 26.2% that the Fed will be more aggressive with a 50 BPS rate hike. Some Federal Reserve officials can be characterized as the more hawkish of the group that is still recommending a 50 BPS rate hike this month when the FOMC meeting convenes (March 22-23). However, many analysts including myself believe that the Federal Reserve will stick to its current narrative which is slowing the pace of rate hikes which most likely will include three 25 BPS rate hikes at the next three FOMC meetings. Lastly, it must be noted that critical reports will shape the final decision of the Federal Reserve at their next meeting which is the jobs report on March 10 and the CPI index for February on March 14. These two reports collectively will be the most current data the Federal Reserve has to decide.