Gold Technical Report: Gold prices traded rangebound yesterday with a positive bias and moved further up registering a green candle on third consecutive day as it reclaimed the psychological mark of 2000 and also the 100 days Exponential Moving Average @ 2004. The recent swings are contained in the range recorded by extreme points 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 39 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 48 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices witnessed a pullback after moving up for three straight sessions. It almost fully reversed the gains of previous session when it crossed above 200 days EMA for the first time in last 36 days. The recent upmoves were capped around 23.40 where all 50,100 and 200 days Exponential Moving Averages are clustering. The Short term Stochastics Oscillator is at 74 and Relative Strength Index near 51.
Fundamental Report: The Gold prices, in current times are primarily driven by a softening U.S. Dollar and increasing tensions in the Middle East, particularly concerns around political stability and oil supply disruptions, which enhance gold’s status as a preferred safe-haven asset. This uptick occurs despite a downturn in the previous week, indicating a shift in investor outlook. The impact of recent economic data releases, such as the consumer price index (CPI), producer price index (PPI), and retail sales figures, is significant in shaping the gold market. The CPI and PPI, reflecting the current state of inflation, are key in influencing investor expectations around monetary policy and interest rates. These inflation indicators often drive investors towards gold as a hedge against currency devaluation. Retail sales data, highlighting consumer spending trends, also play a crucial role in assessing the economy’s health and signaling potential economic directions. Investor focus is intensely on the Federal Reserve’s policy decisions, particularly the details from the January meeting minutes. The Fed’s stance on interest rates, informed by recent inflation data, is a vital determinant of gold’s valuation. The possibility of delayed rate cuts, as suggested by the Fed’s current position and the diverse views among policymakers, could significantly influence gold’s market performance.