Gold Technical Report: Gold prices resumed upwards journey yesterday after a day of retracement, on the back of earlier 2 days continuous rally. The prices crossed and closed above 10 days Exponential Moving Average @ 1968. The prices earlier kept climbing above July High levels breaking the 2000 mark but shying away from 2010 consistently. The technical pullback last month was strong enough to cross above 50 days, 100 days and also 200 days Exponential Moving Average in a single day. On the reverse, the 10 days EMA has also crossed 200 days and 50 days EMA signifying strength. Gold had been on decline throughout earlier but started the rally with a gap up. Prices had reached at 7 moths low and received a much awaited relief. The short term Stochastics Oscillator is at 70 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 60 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also moved up parallely and posted a solid green candle for the third straight day. This week prices have crossed above all 10,50,100 and 200 days Exponential Moving Average in a single day. This strength has helped silver to outperform gold and cross 24.00 mark yesterday on intra day high basis. The Short term Stochastics Oscillator is at 88 and Relative Strength Index near 63.
Fundamental Report: This week became something extraordinary after a hotly anticipated report on U.S Consumer Price Inflation gave traders a greenlight to declare that the Federal Reserve’s fight against inflation was finally over. U.S Consumer Price Inflation fell more than expected to 3.2% in October – the first decline in four months. The reading was also marginally below expectations of 3.3%. The Fed held its benchmark interest rate steady at a 22-year high earlier this month. Traders had put the likelihood of another rate hike at 30% just before the CPI release, but by the close that had been priced out altogether. Instead, they moved to ratchet up the likelihood of a cut, with the prospect of a cut by May soaring from 23% on Monday to 86% by Tuesday’s close. Following the report, JP Morgan put out a note to their clients, advising them to shift away from Stocks and Bonds and diversify into Commodities for 2024. JP Morgan listed several reasons for its outlook, but overall highlighted that the recent move higher in Equities and Bonds was technical in nature, boosted by short covering and momentum strategies.