Gold Technical Report: Gold prices continued decline for fourth straight session as it came off from the high near 10 days Exponential Moving Average. It slipped further to close below the support of 50 Days EMA fo the first time in last 12 sessions. The recent swings are contained in the range recorded by extreme points 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 22 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 43 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices remained volatile after pullback of earlier 2 sessions and crossed above 50 days EMA intra day. However unable to keep strength, fizzeled down in the end managing a close above 10 days EMA. The recent upmoves were capped around 23.40 last week where all 50,100 and 200 days Exponential Moving Averages are clustering. The Short term Stochastics Oscillator is at 53 and Relative Strength Index near 48.
Fundamental Report: The Gold prices are trading jittery with trader’s attention firmly focused on a string of critical economic readings including U.S Consumer Price and Producer Price Inflation figures – all topped off with a dozen or more speeches from Federal Reserve officials, scheduled throughout the week. Taking front and centre stage will undoubtedly be the outcome of two hotly anticipated U.S inflation reports. Based on consensus, market expectations are that U.S inflation likely continued to slow at the start of the year, helping to feed expectations that the Federal Reserve will find interest-rate cuts more palatable in the coming months. The Core Consumer Price Index, a measure that excludes food and fuel for a better picture of underlying inflation, is seen increasing 3.7% in January from a year earlier. Traders will also be monitoring a host of Fed speakers, to gauge the timing of rate cuts this year.