Gold Technical Report: Gold prices continued the rally of earlier session and moved up to close above 10 days EMA @ 1920 on Friday, after 8 days. It also made an intra day high near the conjunction point of 50 days EMA and 100 days EMA near 1930 but slipped back. Major support is near 200 days EMA @ 1900 and major resistance lies near 1951 Horizontal TrendLine touchpoint. The short term Stochastics Oscillator is at 38 (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 also moved up parallely crossing above 10 days EMA @ 23.10 but rebounded to close near the 200 days EMA @ 23.02. Next target is near 23.50 where 50 days EMA and 100 days EMA are at conjuction point. The Short term Stochastics Oscillator is at 23 and Relative Strength Index near 45.
Fundamental Report: Gold prices marched upwards as investor sentiment is hinting at the Federal Reserve’s possible pause in interest rate hikes on Wednesday. With the U.S. central bank’s policy meeting approaching, traders are keenly watching the interest rate trajectory. A confluence of factors – the U.S. job market’s resilience, controlled inflation, and accelerated growth – suggest that Fed officials might project an economic soft landing in their upcoming forecasts. However, the anticipation of another rate hike persists. Additionally, the United Auto Workers union strikes across three Detroit automakers underscored gold’s appeal as a safe-haven asset during geopolitical uncertainties. A dip in the dollar, following recent U.S. data releases, rendered gold cheaper for those dealing in other currencies. Consequently, spot gold surged, registering notable gains for the week. This uptrend comes despite COMEX gold speculators trimming their net long positions. Chinese consumers, hedging against a weakening yuan, have driven gold prices to new heights. Physical gold premiums in China have mirrored this surge, hitting unprecedented levels due to robust demand and limited fresh import quotas. As the yellow metal’s appeal wanes in light of soft-landing predictions and prolonged high rates, the market is looking for fresh triggers to reignite bullish sentiments. With gold’s performance intricately linked to interest rate moves, all eyes are on the Federal Reserve’s forthcoming policy meeting. Should the central bank adopt a dovish stance, it could spell a significant rally for gold. However, any upward trajectory in interest rates might see the non-yielding asset lose its sheen among investors.