Gold Technical Report: Gold declined further yesterday after 2 DOJI signals indicating indecision, for earlier 2 straight sessions. It has been on a decline mode since beginning of the new year and closed below support of 10 days Exponential Moving Average for fourth consecutive day, in last 15 trading sessions. It had struggled and come out of upper range maintained by the market for earlier few sessions looking poised to touch 2100 again. Recently it witnessed volatile movements 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 20 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 47 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices fluctuated both ways yesterday and ended with a DOJI candle. Last week, it remained depressed throughout and played below 200 days EMA. On Wednesday it had breached the support of 10 days Exponential Moving Average and fell further forcefully crossing below all 50,100 and 200 days Exponential Moving Averages on closing basis in a single day. Thus it It has fully reversed the upmove of 13th Dec when it had crossed above all these averages to later hit 25.88 intra day high which now becomes the next target. The Short term Stochastics Oscillator is at 21 and Relative Strength Index near 40.
Fundamental Report: The Gold prices declined on Monday, influenced by a strengthening U.S. dollar and shifting expectations regarding the Federal Reserve’s interest rate policy. This trend is a reaction to the latest U.S. economic indicators, which are guiding market sentiment about upcoming rate adjustments. This drop coincides with a modest rise in the dollar index by 0.1% and U.S. Treasury yields remaining above 4%. The market’s reassessment of the Federal Reserve’s potential rate cut, especially after Friday’s robust labor market data, is impacting gold’s value. Friday’s U.S. Non-Farm Payrolls report, which showed more robust job growth than expected, has prompted a reevaluation of the likelihood of a Federal Reserve rate cut in March. This probability has been adjusted to about 64%, a significant decrease from the nearly 90% chance seen earlier. Gold’s immediate future will likely be shaped by the upcoming U.S. inflation reports. On Thursday, traders will get the opportunity to react to the latest Consumer Price Index (CPI) report, followed by Friday’s Producer Price Index (PPI). Preliminary estimates show the CPI rising 0.2% in December or 3.2% annually. This will put it above the Fed’s target of 2.0%. Despite a strong end to 2023, gold’s path is closely linked to the evolving U.S. labor market, inflation and interest rate forecasts.