Gold Technical Report: Gold prices pulled back on Friday, regaining half of the losses it suffered a day before. After crossing above the 200 DMA at 1785 the next crucial target remains the 1800 mark for the rally The Medium term support stands at 50 DMA @1721 below which the trend may turn bearish. The short-term Stochastics Oscillator is at 26 and the Relative Strength Index is at 57.
Silver Technical Report: The silver prices, closed in green to end the week and tried to recover some fall suffered a day before. The prices continue to trade above 200 DMA @21.16. On the downside, significant support is only at 50 DMA @20.95, crossing below which may change the medium-term trend into negative. The Short term Stochastics Oscillator is at 30 and the RSI momentum is near 59.
Fundamental Report: On Tuesday the U.S. Bureau of Labor Statistics released the CPI index report for November. The report showed that inflation remains elevated above 7%, but has declined substantially, coming in at 7.1% year-over-year in November. informationport resulted in the largest daily price advance of $32 this week. Central banks were extremely active last week with the Federal Reserve, European Central Bank, and the Bank of England all raising their benchmark rates by ½%. However, the hawkish statements by Chairman Powell reinforced that rates will move higher in 2023 and remain at those elevated levels for the entire year. Although Tuesday’s CPI report revealed that inflation for November declined substantially it is still running almost 3 times the pace that occurred before the pandemic and recession. Also, Jerome Powell indicated that the Federal Reserve is committed to maintaining interest rates highly elevated through 2023 and the first half of 2024. Powell also acknowledged that the Fed’s monetary policy next year will most likely lead to a recession. The question becomes what the costs of the recessionary pressures will be. In other words, it is not whether or not the United States will enter another recession, but how deep that recession will be.