Gold Technical Report: On Friday, Gold prices opened near 10 days Exponential Moving Average and moved up steadily. The technical pullback was strong enough to cross above 50 days, 100 days and also 200 days EMA in a single day. Gold has been on decline throughout earlier 2 weeks but opened the last week with a gap up. Prices had reached at 7 moths low and received a much awaited relief. The strength prevails till prices sustain the crucial 1900 mark. The short term Stochastics Oscillator is at 82 (it is considered overbought when above 51 and oversold when below 20) and Relative Strength Index (RSI) is at 57 (it is considered overbought when above 48 and oversold when below 30).
Silver Technical Report: Silver prices also moved up strongly on Friday crossing above the 10 days EMA and closed just below 50 days EMA. Silver is also trying to recover from the downfall it faced for last two weeks. Next target is near the conjunction point of 100 days EMA and 200 days EMA. The Short term Stochastics Oscillator is at 65 and Relative Strength Index near 52.
Fundamental Report: Gold, often considered a safe-haven asset, posted its best weekly performance in seven months, soaring by 5.2%. As the Middle-East conflict intensifies, traders are pivoting towards the relative safety of gold. For gold, which has seen its prices climb from the mid-$1,800s to the mid-$1,900s, the psychological barrier of $2,000 is within sight. If the geopolitical situation deteriorates further, a rally towards this level appears increasingly plausible. Beyond geopolitics, U.S. economic indicators are proving favorable for gold. The September Consumer Price Index (CPI) was a head-turner, coming in hotter than expected at a 0.4% month-over-month increase and a 3.7% annual increase. This exceeds the forecast figures, which were already high at 0.3% and 3.6%, respectively. Producer Price Index (PPI) numbers also surpassed expectations earlier in the week. While market watchers initially speculated that the Federal Reserve would respond with a rate hike in their upcoming November meeting, those expectations have since tempered, contributing to gold’s upward trajectory.