Gold Technical Report: Gold prices maintained the upmove for all sessions last week as it has nicely bounced from the support of 10 days Exponential Moving Average and trading near all time high. The rally looks confident as it had reclaimed the psychological mark of 2000 and also the 100 days Exponential Moving Average recently. The short term Stochastics Oscillator is at 92 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 84 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices moved bothways on last day of the week but closed with a DOJI candle indicating indecision. also moved up parallely for second straight session yesterday after it witnessed a correction , a day before. Recently it crossed above 10, 50 and 100 days EMA in a single day and marched ahead. The initial upmoves were capped around 23.40, near 200 days Exponential Moving Average, which will now act as a support. The Short term Stochastics Oscillator is at 87 and Relative Strength Index near 66.
Fundamental Report: The Gold prices reached record levels last week, buoyed by changing expectations for U.S. Federal Reserve policies and key economic data. The key factors influencing gold prices were Fed Chair Powell’s remarks and the rise in the U.S. unemployment rate, which amplified speculation about potential Federal Reserve interest rate reductions. Jerome Powell, Chair of the Federal Reserve, indicated possible rate cuts in the future, although their timing remains uncertain. He emphasized a cautious approach, focusing on achieving sustainable inflation movement towards a 2% target. Friday’s U.S. labor market data, showed an uptick in unemployment and moderated wage gains against strong job growth, reinforcing the expectation of a Fed rate cut around June. This anticipation positively influenced the gold market, suggesting strong potential for continued price increases. The upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) reports could significantly impact gold prices. Higher-than-expected CPI and PPI readings may suggest persistent inflation, potentially causing the Federal Reserve to hesitate on rate cuts. This scenario could lead to a consolidation in gold prices as investors reassess the likelihood of continued monetary easing. Conversely, lower-than-anticipated inflation figures could reinforce the expectation of rate cuts, further boosting gold’s appeal as a safe-haven asset.