Gold Technical Report: Gold kept on sliding down for second consecutive session andclosed below 10 days Exponential Moving Average. Last weekit witnessed volatile movement when it crossed above 2100 mark upside and also drifted down below 2050 at the close on the same day. The prices remained depressed on heavy profit booking and now have crossed below the 2000 mark taking support of 50 days EMA. The short term Stochastics Oscillator is at 8 (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 drifted downwards further and registered 6th straight red candle. It has started decline on massive profit booking after it hit 25.88 intra day high last week. The pricess are expected to remain depressed as it forcefully crossed below all 50,100 and 200 days Exponential Moving Average on Friday. The Short term Stochastics Oscillator is at 9 and Relative Strength Index near 40.
Fundamental Report: Gold prices are witnessing nervous caution, near a three-week low as investors anticipate crucial U.S. inflation data and central bank policy meetings. These upcoming events are key in shaping expectations about future interest rate trends. Market is particularly focused on this week’s Federal Reserve policy meeting and the impending release of the U.S. consumer price index (CPI) report. A flat month-over-month CPI is expected, with a year-over-year increase of 3%, hinting at a possible cooling in inflation. The Federal Reserve is likely to maintain rates at 5.25% to 5.50%, with market predictions shifting to a potential rate cut in May. Recent U.S. economic data, including a drop in unemployment and signs of cooling inflation from the University of Michigan’s consumer data, have sparked optimism for a ‘soft landing’ scenario. However, the dollar steadied following positive jobs data, and expectations for a March rate cut have diminished, with a stronger likelihood in May. The week is packed with central bank meetings, including the European Central Bank, Bank of England, and others, potentially impacting gold price. While the Federal Reserve’s rate decision is highly anticipated, its stance might be more conservative than the dovish market expectations, leading to cautious trading in gold.