Gold Technical Report: Gold moved in a narrow range with negative bias yesterday. The movement was mostly capped between 10 days and 50 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 36 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 49 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also declined parallely after it witnessed selling pressure near 10 days EMA. It had posted a DOJI candle on last week, signifying indecision after a good bounce back earlier, when it crossed above all 50,100 and 200 days Exponential Moving Averages on intra day high basis but could not sustain. The Short term Stochastics Oscillator is at 14 and Relative Strength Index near 36.
Fundamental Report: Fed’s cautious stance and robust US economy data, pose a resistance for Gold prices in short-term outlook. Recent statements from Fed officials suggest a need for more inflation data before considering rate cuts, with expectations for cuts starting in the third quarter. This follows positive U.S. consumer sentiment and robust labor market and retail sales data, indicating a stable economy. Consequently, the likelihood of a March rate cut has decreased significantly. The U.S. dollar index saw a slight decline, while yields on U.S. 10-year Treasury notes also fell from recent highs. Upcoming U.S. flash PMI reports and GDP estimates are likely to influence these trends further. A higher PCE inflation could strengthen the dollar and limit gold’s upside potential. The market is also closely monitoring central bank decisions in Japan and Europe. The yen showed notable movement in quiet trading, influenced by the Bank of Japan’s meeting and large currency option expiries. The dollar’s performance remains tentative, reflecting market uncertainty about the Fed’s rate cut timeline.