Daily Report – 12 April 2023

12 April 2023
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2007
1988
2003
1990
+13.00
+0.65%
Silver
25.12
24.82
25.03
24.85
+0.18
+0.72%

Gold Technical Report: Gold resumed upside again, after taking a nice buying support on intra day low near 10 Day Moving Average (DMA) @ 1991. Both 10 DMA and 50 DMA @ 1902 are trading above 200 DMA @ 1790 hence, the medium term trend looks upwards. The major support stands at 200 DMA below which the trend may turn bearish. The short term Stochastics Oscillator is at 60 (it is considered overbought when above 80 and oversold  when below 20) and Relative Strength Index (RSI) is at 64 (it is considered overbought when above 70 and oversold when below 30) .

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
1958
1986
2000
2016
2050
2075
2100

Silver Technical Report: The silver prices continued the upmove after breaking resistance it faced for last 4 trading sessions and now trading near the 12 month high. It has a strong support near the common area of 100 DMA @ 22.76 and 50 DMA @ 22.35. The medium term trend looks bullish as both of these averages above 200 DMA @ 21.12. The Short term Stochastics Oscillator is at 88 and Relative Strength Index near 77.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
24.25
24.60
24.97
25.28
25.62
26.94
27.25

Fundamental Report: Aside from inflationary numbers, bullish market sentiment for gold continues to grow as central banks continue their campaigns to buy gold. Recently central banks have been diversifying their holdings by boosting their reserves of gold bullion. Geopolitical tensions continue to rise on multiple fronts. The war in Ukraine continues unchecked, with Russia escalating its brutal military campaign. A strong decline in the CPI would provide the Federal Reserve with data suggesting that inflation continues to decline which is necessary for them to pivot from an extremely hawkish monetary policy of rate hikes at each FOMC meeting to pausing rate hikes at subsequent FOMC meetings after May. Currently, it is widely anticipated that the Federal Reserve will raise rates in May by ¼%. Economic predictions and forecasts expect that the inflation rate will decline from 6% to 5.2% YoY. However, the predictions also expect that the core inflation rate will increase by 0.1% from 5.5% to 5.6%. The Federal Reserve focuses on the core inflation numbers which exclude food and energy costs. China has made bold moves as it began military exercises focusing on Taiwan. The Chinese military recently sent dozens of aircraft across the Taiwan Strait median line. This occurred a few hours after China announced the beginning of three days of drills around Taiwan in response to the island’s President, Tsai Ing-wen, visiting the U.S. and meeting the House speaker. North Korea continues to escalate its nuclear capabilities. The Associated Press today reported that “North Korean leader Kim Jong Un vowed to enhance his nuclear arsenal in more “practical and offensive” ways as he met with senior military officials to discuss the country’s war preparations in the face of his rivals’ “frantic” military exercises, state media said Tuesday.”

Key US Economic Reports & Events
When
Actual
Expected
Previous
CPI m/m
4:30 PM
NA
0.2%
0.4%
CPI y/y
4:30 PM
NA
5.1%
6%
Core CPI m/m
4:30 PM
NA
0.4%
0.5%
FOMC Meeting Minutes
10:00 PM
NA
NA
NA
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