Gold Technical Report: Gold moved up on Friday to end the week on a positive note. It managed to close above 10 days Exponential Moving Average after 7 days of struggle, thanks to buying support near 50 days EMA. 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 55 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 57 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also moved up parallely after facing decline for the four straight sessions and closed above 10 days EMA after 7 days. It also crossed above all 50,100 and 200 days Exponential Moving Averages on intra day high basis but could not sustain. The Short term Stochastics Oscillator is at 38 and Relative Strength Index near 46.
Fundamental Report: The week filled with diverse economic indicators and geopolitical events, Gold prices showed resilience, ending at $2049.155, an increase of 0.17%. The metal, consistently above $2025 per ounce and reaching a high near $2060, illustrated its role as both an inflation hedge, following the Consumer Price Index (CPI) report, and as a safe haven in response to increased Middle East tensions. The CPI data revealed a slight rise in consumer inflation, tempering expectations for immediate Federal Reserve rate cuts. This report initially led to a boost in gold prices, as investors considered gold a viable hedge against inflation. However, the Producer Price Index (PPI) suggested a decline in wholesale prices, indicating a potential trend of easing inflation and supporting the prospect of future rate reductions. These economic indicators significantly swayed gold prices throughout the week. The escalated military actions by the U.S. and Britain in Yemen heightened market uncertainty, enhancing gold’s status as a preferred safe-haven asset. This increase in global tension played a crucial role in the upward movement of gold prices. The forthcoming week’s focus will be on key economic reports, including China’s Q4 GDP and U.S. retail sales data. A subdued economic performance globally could heighten gold’s appeal as a safe-haven asset, while robust data might constrain its gains. Nevertheless, with persistent geopolitical risks and speculation regarding Federal Reserve’s rate decisions, gold prices are expected to maintain a cautiously bullish trend. Investors will be closely monitoring these developments, which are anticipated to be key influencers of gold prices in the upcoming week.