Gold Technical Report: Gold witnessed selling pressure and declined for second day after three straight sessions of rally earlier and closed below 50 days Exponential Moving Average. 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 13 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 42 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also declined parallely as it slid from the intra day high near 10 days EMA. It had posted a DOJI candle on Monday, signifying indecision after a good bounce back earlier, 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 12 and Relative Strength Index near 38.
Fundamental Report: The big market moves have presented savvy traders with a series of highly lucrative opportunities to profit from the recent macro-driven rally as well as the huge price reversal that has subsequently followed. Recent developments in the Middle East, particularly disruptions to commercial vessels in the Red Sea have raised concerns about the risks of an increase in energy prices that could fuel a resurgence in inflation – forcing central banks around the world back into “hawkish” mode. The escalating number of attacks on commercial vessels in the Red Sea has pushed shipping costs up by more than 600% – hitting businesses hard with higher freight charges, longer lead times and a shortage of containers. Experts feel that it won’t take much for Commodity prices to move significantly higher in this current macro and geopolitical environment. Any substantial pullbacks should be viewed as buying opportunities because prices won’t stay low for long.