Gold Technical Report: Gold displayed a rangebound session, holding support near 10 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 38 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 56 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices tried to spurt upwards but fizzled down at the day end. However it comfortably managed to close , above the support of 10 days Exponential Moving Average. 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 51 and Relative Strength Index near 56.
Fundamental Report: As underscored by Federal Reserve members, monetary policy decisions will continue to be flexible and based on the most recent data involving the economy and inflation. Gold is feeling jittery both sides amidst kicking off positions rapidly as the holiday season beginning in just a few days, we can anticipate lower volume begin to come in to the markets. The Federal Reserve has finally signaled an end to its restrictive monetary policy, which was composed of aggressive rate hikes and a reduction of their asset balance sheet. The Fed also announced its plans to begin cutting interest rates next year. The question becomes when will the first rate hike be implemented and how deep will the rate cuts be next year. As per Federal Reserve members, monetary policy decisions will continue to be flexible and based on the most recent data involving the economy and inflation. Chairman Powell stated that based on the median votes contained in this month’s “dot plot”, it is anticipated that the Federal Reserve will cut rates by 75 basis points by implementing three 1/4% cuts. Also, investors will be focused on Friday’s PCE index report, which will either strengthen or lessen how aggressively the Federal Reserve cuts rates next year. Currently, predictions for the Personal Consumption Expenditures index anticipate that inflation will continue to decline. On Friday, investors will have the latest data on the PCE. It is anticipated that the core PCE price index will show a decline from 3.5% in October to 3.3% last month. Headline PCE is expected to reveal a decline from 3% in October to 2.8% last month.