Gold Technical Report: The gold witnessed a good fresh buying and posted a white Marubozu on the daily charts. The prices not only crossed over but also closed above the main level of $1675, where the medium-term trend will turn positive. Also at the same level is resistance as the current 50 DMA on Daily charts. The short-term Stochastics Oscillator is at 71 and the Relative Strength Index is at 52.
Silver Technical Report: The silver prices also parallel with Gold continuing the bullish trend. The positive for silver unlike gold is that prices were already above 50 DMA and now are fast approaching 200 DMA. On the downside, major support is only at 18.00, crossing below which will change the medium-term trend into negative. On the upside, a crossing of 200 DMA at 21.46 will change the main trend to positive. The Short term Stochastics Oscillator is at 71 and the RSI momentum is near 52.
Fundamental Report: Based on recent events involving the Federal Reserve we could extrapolate that in November gold began like a lamb with a declining price and looks like it could end like a lion. Gold, certainly looked as though it began the month of November and continues to trade under pressure to lower pricing. Last week, Fed raised its benchmark rate by 75 basis points as widely expected on Wednesday. This was telegraphed for weeks and had already been priced into gold. Ahead of the Fed announcements, some gold speculators bought bullion in the hope that the Fed would reveal a plan to begin slowing down the size of its rate hikes in December. However, this didn’t happen and conditions even worsened after Fed Chair Powell said there would be no softening in December and rates will go higher. So instead of reaching a terminal rate in March 2023, the market is now anticipating a May 2023 date. This bearish news surprised gold traders and encouraged today’s liquidation. Meanwhile, the Bank of England also jumped on Thursday’s supersized rate hike bandwagon. The BOE raised interest rates by 75 basis points to 3% in its biggest hike since 1989 and warned of a “very challenging” outlook for the economy. This takes its fed funds rate to between 375 and 400 basis points. During the press conference held a one-half hour after the meeting concluded Chairman Powell made it clear that the “ultimate level” of interest rates would likely be higher than previously thought adding that he believed that the window for a soft landing has significantly narrowed.