Gold Technical Report: Gold moved up with conviction anc came out of upper range maintained by the market for last few sessions, holding support near 10 days Exponential Moving Average at the open. 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 88 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 57 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also moved up parallely posting a green Maribozu candle on daily charts and throuout the day maintained level 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 86 and Relative Strength Index near 58.
Fundamental Report: As per the leading Wall Street banks, the macroeconomic backdrop for Gold in 2024 is looking more bullish than ever before. The precious metals recent glittering performance points to a “tell-tale sign” that ultimately suggests that we could be at the beginning of a new major Supercycle for Gold. Looking ahead, the major market-moving event that traders will be watching closely for clues on Gold’s next big move will be the final U.S PCE Inflation report of the year, due for release on Friday. There will be a huge focus on Friday’s data, not only because it’s the Fed’s preferred measure of inflation, but also because traders have already begun pricing in bigger-than-expected rate cuts in 2024. Market consensus points toward a further easing of inflation to 3.3% year on year in November, down from 3.5% in the prior month. This outcome will boost optimism that the Federal Reserve could start cutting interest rates as early as the first quarter of 2024. As traders know – “the bigger the rate cut, the bigger the rally in precious metals”.