Gold Technical Report: Gold prices continued to strengthen last week to close at 3 months high but went through a pullback yesterday. The gold seems to be catching pace again as the prices try hard to cross above the crucial 1800 mark and 200 DMA at 1789 on Daily charts currently. The Major support stands at 50 DMA @1714. The short-term Stochastics Oscillator is at 52 and the Relative Strength Index is at 59.
Silver Technical Report: The silver prices, parallel with gold prices marched up smartly last week but went through a correction yesterday. The prices continue to trade above 200 DMA @21.21. On the downside, major support is only at 50 DMA @20.70, crossing below which may change the medium-term trend into negative. The Short term Stochastics Oscillator is at 83 and the RSI momentum is near 67.
Fundamental Report: Globally central banks are set to announce interest rate revisions this week including the European Central Bank, Bank of England, and the Swiss National Bank. In the United States, market participants are bracing for two key events to occur on Tuesday and Wednesday of this week. Events Over the Next Two Days Will Dramatically Impact Gold Prices. Data from Tuesday’s inflation report will be a key element in shaping the decisions made by the Federal Reserve which will be announced on Wednesday. On Tuesday the government will release the CPI index report for November, the last report for this year. On Wednesday the Federal Reserve will conclude its last FOMC meeting this year which will be followed by the release of a Fed statement and a press conference by Chairman Jerome Powell. Currently, the Fed is expected to implement a 50-bps rate hike. According to the CME’s FedWatch tool, there is a 74.7% probability that the Fed will raise rates by 50 bps and a 25.3% probability of a 75 bps rate hike.