Gold Technical Report: Gold rallied up vigorously after coming out of pessimism of earlier few bearish sessions and bounced up from the support of 50 days Exponential Moving Average to close above 10 days EMA. 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 25 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 58 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also moved up parallely after a 7 days of consistent downfall and forcefully crossed above all 50,100 and 200 days Exponential Moving Average on closing basis. It has started decline on massive profit booking after it hit 25.88 intra day high last week. The Short term Stochastics Oscillator is at 41 and Relative Strength Index near 20.
Fundamental Report: The Federal Reserve concluded its last FOMC meeting of the year, and as expected, they kept their benchmark interest rate unchanged. They also released an updated economic forecast in its Summary of Economic Projections. The most current projections indicate that central bank officials almost unanimously are anticipating interest rate cuts to begin next year, with the expectations of a ¾% cut taking Fed funds rates to approximately 4.6%. Seventeen voting members are all predicting interest rate cuts next year, with five officials projecting a decrease of ¾%, five officials anticipating a larger rate cut than ¾%, and the remaining two voting members anticipating no rate cuts next year. According to their economic projections, the Fed believes core inflation will peak at 2.4% next year, which is lower than its projections in September of 2.6%. The Federal Reserve is also projecting inflation will cool to 2.2% in 2025 and 2.0% in 2026. Their projections anticipate unemployment rising to 4.1% in 2024 and remaining at that level through 2026. The Fed also anticipates an economic deceleration forecasting growth at 1.4% next year, and rising to 1.8% in 2025 and 1.9.