Gold Technical Report: Gold price (XAU/USD) attracts some buyers during the early part of the European session on Friday, and looks to build on its recovery from a two-month low, around the $1,984. Any subsequent move up is likely to confront some resistance near the $2,015 level. Some follow-through buying should allow the Gold price to test the 50-day SMA, currently around the $2,030 region. The latter should act as a key pivotal point, which if cleared decisively will set the stage for additional gains beyond the $2,044-2,045 intermediate hurdle, towards the $2,065 supply zone.
On the flip side, the 100-day SMA, currently around the $1,995 area, could act as immediate support ahead of the $1,984 region, or a two-month low touched on Wednesday. This is followed by the very important 200-day SMA, currently pegged near the $1,965 area, which if broken decisively will be seen as a fresh trigger for bearish trades. The Gold price might then accelerate the fall towards an intermediate support near the $1,952-1,950 zone en route to the November 2023 low, around the $1,932-1,931 region.
The short term Stochastics Oscillator is at 27 (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 bounced back for second straight session, crossing above 10 days EMA and tried approaching 50 days EMA before close. The recent upmoves were capped around 23.40 where all 50,100 and 200 days Exponential Moving Averages are clustering. The Short term Stochastics Oscillator is at 57 and Relative Strength Index near 52.
Fundamental Report: The Gold prices recovered some ground on Thursday, as it reclaimed the $2000 mark due to falling US Treasury bond yields. A tranche of mixed US economic data weighed on the Greenback. The latest data from the United States was mixed. Retail Sales for January saw a decrease of -0.8% month-over-month, falling short of both the previous month’s figures and the estimated -0.1% contraction. This decline was largely attributed to reduced sales at auto dealerships and gasoline service stations, with stormy weather conditions further dampening sales. Concurrently, Initial Jobless Claims for the latest week came at 212K, lower than both the forecasts and the previous week’s reading of 220K. This comes as a somewhat unexpected development, given that claims were anticipated to increase following announcements of layoffs by several companies.