Gold Technical Report: Gold traded rangebound with nervousness after 2 sucessive bearish sessions and closed along the support of 50 days Exponential Moving Average. Last week it 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 6 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 42 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices drifted downwards further and registered 7th 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 8 and Relative Strength Index near 37.
Fundamental Report: Two important events that will shape the economic fabric occurred yesterday. The November CPI was released by the BLS and the last FOMC meeting of the year started. The core CPI (all items less food and energy) rose 0.3% in November which is slightly above the core CPI in October which rose by 0.2%. “The all items index rose 3.1 percent for the 12 months ending November, a smaller increase than the 3.2-percent increase for the 12 months ending October. The all items less food and energy index rose 4.0 percent over the last 12 months, as it did for the 12 months ending October. The energy index decreased 5.4 percent for the 12 months ending November, while the food index increased 2.9 percent over the last year.” Federal Reserve officials will decide whether to raise rates or continue its rate hike pause. According to the CME’s FedWatch tool, there is only a 1.6% probability that the Federal Reserve will raise rates by ¼% tomorrow with the overwhelming probability of 98.4% that they will vote to maintain their benchmark interest rate at its current level between 5 ¼ and 5 ½%.