Gold Technical Report: Gold prices stayed in a narrow band yesterday and ended with a consecutive red DOJI candle signifying indecision. However it managed to close above the support of 10 days Exponential Moving Average. The recent swings are contained in the range recorded by extreme points when it crossed above 2100 mark upside on 4th Dec and also drifted down below 1980 on 12th Dec. The short term Stochastics Oscillator is at 43 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 51 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices witnessed a pullback yesterday against recent fall and closed near 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 38 and Relative Strength Index near 47.
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’ speeches this week combined with next week’s government release of 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.