Gold Technical Report: Gold moved in narrow band and closed with a DOJI candle yesterday indicating indecision, after decline in earlier session and other 2 DOJI’s for earlier 2 straight sessions. It has been on a south mode since beginning of the new year and closed below support of 10 days Exponential Moving Average for fifth 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 13 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 46 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices tried moving upwards to briefly touch 10 days EMA yesterday on intra day basis but fizzled on profit booking and ended with a red Maribozu candle. Last week 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 9 and Relative Strength Index near 37.
Fundamental Report: The Gold prices played neutral, as market participants await the Bureau of Labor Statistics inflation report, the CPI for December, which will be released at 8:30 AM ET on Thursday, July 11. Currently, core inflation stands at 4% with economists’ forecasts predicting that inflation will show a year-over-year decline of 0.2% taking core inflation to 3.8%. Economic forecasts are also predicting an increase in headline inflation with Thursday’s report expected to reveal that headline inflation continued to rise last month by 0.2% which would take this inflationary gauge to 3.2% year-over-year.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. According to the CME’s Fedwatch tool, there is a 95.35% probability that the Federal Reserve will maintain its current level of interest rates between 5 ¼% and 5 ½% at the January FOMC meeting, which will conclude on the 31st of this month.