Gold Technical Report: Gold performed little positive within a tight range holding 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 30 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 53 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices however are looking nervous and dipped below 10 days EMA intraday basis. Last week it displayed robust upmove as it forcefully crossed above all 50,100 and 200 days Exponential Moving Average on closing basis in a single day. It has started decline earlier on massive profit booking after it hit 25.88 intra day high which now becomes the next target if rally sustains. The Short term Stochastics Oscillator is at 38 and Relative Strength Index near 51.
Fundamental Report: Gold is showing little change early Monday, trading at $2024.33, as traders consider the impact of the Federal Reserve’s recent policy shift on Treasury yields and the U.S. Dollar, alongside assessing recession risks for 2024. The Fed’s dovish pivot is a key factor influencing both U.S. Treasury yields and the dollar’s strength, which in turn affects gold prices. While market activity is expected to slow down heading into the Christmas holiday, key economic reports such as the U.S. Core PCE Price Index, Final GDP, and consumer sentiment data, as well as the U.K.’s CPI and Retail Sales figures, are anticipated to provide further direction. In addition to the Fed, the Bank of Japan’s policy meeting this week, where a shift from negative interest rates is on the table, is drawing attention. U.S. economic indicators, particularly the core PCE index report, are watched for clues on inflation trends and potential Fed actions. Gold prices are currently hovering around $2024.33, reflecting the market’s balancing act between the Fed’s dovish signals, fluctuating Treasury yields, and a shifting dollar. These factors, coupled with global central bank policies and upcoming economic reports, are key to determining gold’s short-term movement.