Daily Report – 18 December 2023

18 December 2023
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2045
2015
2018
2035
-17.00
-0.84%
Silver
24.30
23.74
23.82
24.14
-0.32
-1.33%

Gold Technical Report: Gold declined on profit booking on Friday on the back of positive performance in earlier two sessions. However it managed to find support near 10 days Exponential Moving Average. Recently it witnessed volatile movements when it crossed above 2100 mark upside and also drifted down below 2050 at the close on the same day. The short term Stochastics Oscillator is at 32 (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).

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
1980
2000
2011
2024
2050
2072
2100

Silver Technical Report: Silver prices also moved lower parallely after 2 days of robust upmove when forcefully crossed above all 50,100 and 200 days Exponential Moving Average on closing basis. It has started decline earlier on massive profit booking after it hit 25.88 intra day high last week which now becomes the next target if rally sustains. The Short term Stochastics Oscillator is at 43 and Relative Strength Index near 52.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
23.48
23.71
23.90
24.13
24.33
24.50
24.75

Fundamental Report: Gold witnessed selloff on Friday which follows two days of strong gains that occurred immediately after the conclusion of this month’s FOMC meeting. The price surge that occurred on Wednesday and Thursday was in response to the release of the FOMC statement, Summary of Economic Projections (SEP), and comments by Chairman Powell on Wednesday. All the information from the Fed indicated a major pivot in their monetary policy. Although the Federal Reserve stopped raising rates a few months ago and announced a series of rate hike pauses, comments by Federal Reserve officials remained close to the chest avoiding any information about when they planned to begin rate cuts. Also, the release of economic projections which contained detailed information revealing that central bank officials almost unanimously are anticipating interest rate cuts to begin next year, with the expectations of a ¾% cut taking Fed funds rates to approximately 4.6%. The immediate reaction was a strong decline in the dollar, which set into motion strong gains in gold as a result of bullish market sentiment and dollar weakness. US Dollar strength was all that was needed for traders to pull profits on the recent advance in gold prices. Fed Chair Jerome Powell’s comments indicated a shift towards a more dovish stance, suggesting that the prolonged tightening of monetary policy may be nearing its end. This outlook was echoed by a majority of Fed policymakers, pointing towards lower borrowing costs in the future. However, contrasting remarks from New York Fed President John Williams about not actively considering rate cuts introduced uncertainty. The Fed’s balanced approach towards its dual mandate of stable prices and maximum employment, along with Powell’s hint at a potential “soft landing,” played a pivotal role in shaping market expectations.

Key US Economic Reports & Events
When
Actual
Expected
Previous
NAHB Housing Market Index
7:00 PM
37
36
34
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