Gold Technical Report: Gold played cautiously on Friday scaling the 2000 plus levels but then retraced back on profit booking. The prices for last 2 weeks are climbing above July High levels breaking the 2000 mark but shying away from 2010 consistently. The technical pullback last month was strong enough to cross above 50 days, 100 days and also 200 days Exponential Moving Average in a single day. On the reverse, the 10 days EMA has also crossed 200 days and 50 days EMA signifying strength. Gold had been on decline throughout earlier but started the rally with a gap up. Prices had reached at 7 moths low and received a much awaited relief. The short term Stochastics Oscillator is at 70 (it is considered overbought when above 51 and oversold when below 20) and Relative Strength Index (RSI) is at 62 (it is considered overbought when above 48 and oversold when below 30).
Silver Technical Report: Silver prices registered a solid green candle on Friday as prices crossed above and closed above all 10,50,100 and 200 days Exponential Moving Average in a single day. It is trying hard to hit the Oct month highs but faces a strong resistance above 23.00 due to consistent selling pressure near 23.70. The Short term Stochastics Oscillator is at 58 and Relative Strength Index near 54.
Fundamental Report: The allure of gold strengthened past week, riding on the back of a softer U.S. Dollar and retreating Treasury yields. This uptick came in the wake of employment figures that fell short of market forecasts, influencing investor sentiment to bet against any immediate interest rate hikes by the Federal Reserve. However, the psychological $2,000 threshold continues to challenge market participants. The latest Non-Farm Payrolls report unveiled a rise of 150,000 jobs in October, undercutting the anticipated 180,000, sparking discussions about a cooling labor market that may deter the Fed from maintaining its hawkish stance. As wage inflation decelerates, the door seems open for a potential pause in rate hikes, providing a tailwind for gold prices. The economic slowdown was further evidenced by a dip in the U.S. services sector activity for October, painting a picture of a market ripe for dovish monetary policy. Investors remain vigilant about the developments in the Middle East, recently gold climbing more than 7% due to its safe-haven demand amidst geopolitical uncertainties. Although an immediate escalation into regional conflict appears unlikely, the precious metal’s significant rally over the past month may enter a phase of consolidation.