Gold Technical Report: From a technical perspective, the $2,023-2,022 area is likely to protect the immediate downside ahead of the weekly low, around the $2,012-2015 region. Some follow-through selling will expose the $2,000 psychological mark, below which the Gold price could accelerate the slide towards the 100-day Simple Moving Average (SMA), currently around the $1,986 zone. The downfall could extend further towards the very important 200-day SMA, near the $1,966-1,965 region.
On the flip side, the overnight swing high, around the $2,044-2,045 area, or the weekly top, now seems to act as an immediate hurdle ahead of the $2,054-2,055 zone and the $2,065 region, or last week’s swing high. Given that oscillators on the daily chart are holding in the positive territory, a sustained strength beyond should lift the Gold price towards the $2,078-2,079 area, or the YTD peak set in January. The subsequent move-up should allow the Gold to reclaim the $2,100 mark and climb further to the next relevant hurdle near the $2,120 region.
Silver Technical Report: Silver prices continued the downtrend after yesterday’s DOJI and was continuously pressured below 10 days EMA. The upmove was capped around 23.40 last week where all 50,100 and 200 days Exponential Moving Averages are clustering. The Short term Stochastics Oscillator is at 28 and Relative Strength Index near 41.
Fundamental Report: The Gold prices showed minimal change, finding slight support as the dollar receded from its three-month peak, though the fading anticipation of early U.S. rate cuts clouds the metal’s future. Amid expectations of enduring high rates fueled by robust U.S. economic indicators and Federal Reserve officials’ firm stances, gold and silver’s appeal is dampened, as high rates elevate the opportunity cost of holding non-yielding bullion. Federal Reserve officials will be exceedingly busy, with eight members scheduled to speak this week. Additionally, next week, the government will release its latest inflationary data vis-à-vis the CPI report for January. Expectations are that the inflation report will result in bullish market sentiment, as economists are looking for a softening in inflationary pressures. This would be a distinct difference from last week’s jobs report, which decreased the optimism of a rate cut in March. Market participants are eagerly awaiting information regarding the timing of a pivot by the Federal Reserve from rate hikes to rate cuts. The overwhelming consensus by analysts that will be expecting the Fed to continue the narrative that a rate cut in March is unlikely to occur.