Gold Technical Report: Gold inched up further for third straight session and comfortably closed above 10 days Exponential Moving Average for second time during last 8 days. 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 46 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 54 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices traded sideways and closed near 10 days EMA. It posted a DOJI signifying indecision after a good bounce back a day before, when it 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 29 and Relative Strength Index near 43.
Fundamental Report: The sustained move above $2,050 will demonstrate gold’s resilience, driven by Middle East tensions and anticipated Fed rate cuts. The ongoing conflict and U.S. military involvement in Yemen are escalating global tensions, driving investors towards the safety of gold. These factors are exerting a strong upward pressure on gold prices, a trend that is likely to persist in the face of continued unrest. Recent U.S. economic data, particularly the unexpected drop in producer prices, is causing Treasury yields to fall, further cementing gold’s position as a preferred investment. The market is increasingly betting on Federal Reserve rate cuts, potentially beginning in March, a factor that could favorably influence the future direction of gold prices. The combination of a weakening dollar, lowered Treasury yields, and persistent geopolitical risks is creating a perfect storm for gold’s bullish trend. The market is poised for short-term rate stability with potential rate reductions later in the year, further strengthening gold’s appeal. Upcoming economic reports will be crucial, but the current indicators point towards a continued bullish trend for gold, making it an attractive option for traders seeking stability and growth.