Gold Technical Report: Gold declined further on profit booking yesterday and closed near 10 days Exponential Moving Average @ 1975. 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 41 (it is considered overbought when above 51 and oversold when below 20) and Relative Strength Index (RSI) is at 57 (it is considered overbought when above 48 and oversold when below 30).
Silver Technical Report: Silver prices also declined parallely on profit booking after the solid green candle on Friday as prices crossed 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 near 23.70 but faces a strong resistance above 23.00 due to consistent selling pressure. The Short term Stochastics Oscillator is at 47 and Relative Strength Index near 50.
Fundamental Report: The gold dipped on Monday with an uptick in U.S. bond yields, anticipating Federal Reserve Chair Jerome Powell’s upcoming remarks to shed light on the interest rate trajectory. A resurgence in yields suggests potential for gold to fall beneath the crucial support of $1,969.91. Following a five-week low, the 10-year yield climbed to 4.5910%, diminishing gold’s allure as yields detract from the appeal of non-yielding assets like bullion. A softer-than-expected jobs report catalyzed speculation that the Fed’s rate hikes might pause, pushing the dollar to a six-week trough. Employment growth decelerated in October, with wages posting the mildest year-on-year climb in over two years, hinting at a cooling labor market. Market participants now see a high likelihood of rates holding steady in December, with anticipations of policy easing by mid-year. With traders pricing in high chances of the rate hike cycle pausing, and potentially shifting to easing by mid-2023, the immediate trajectory for gold appears cautiously bullish. However, any resurgence in U.S. Treasury yields or unexpected hawkish cues from Fed speeches could undermine this optimism, potentially pressuring gold.