Gold Technical Report: Gold remained volatile yesterday and showed 2 way fluctuations. It moved above 10 days Exponential Moving Average after 4 days of struggle but fizzled down on profit booking and slid below 50 days EMA. However it managed to recover before close and managed to end the day between the two. 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 29 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 50 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices declined for the fourth straight session as the struggle continues to regain 10 days EMA for last 7 days. 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 19 and Relative Strength Index near 38.
Fundamental Report: The Bureau of Labor Statistics released its most current inflationary data for December 2023 stating that, “The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in December on a seasonally adjusted basis, after rising 0.1 percent in November, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased by 3.4 percent before seasonal adjustment. The report shows that both monthly and annual numbers for inflation in December were higher than inflationary pressures for November. The numbers revealed today were fractionally above economists’ forecasts. This created extreme volatility and price swings in US equities, the dollar, and the precious metals. Contrary to what some would logically assume according to the CME’s FedWatch tool, the probability that the Federal Reserve will implement its first rate cut in March rose from 64.7% yesterday to 71.8% today.