Gold Technical Report: Gold moved in a narrow range with positive bias yesterday. The movement was mostly capped between 10 days (which was crossed intraday basis but could not sustain) 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 35 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 47 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices witnessed a bounceback after it witnessed selling pressure near 10 days EMA posting 2 continuous red candles. It had posted a DOJI candle 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 22 and Relative Strength Index near 38.
Fundamental Report: Short-term gold price direction hinges on U.S. economic reports and Federal Reserve’s interest rate decisions, influenced by a combination of declining U.S. Treasury yields and a softer U.S. dollar. This movement comes as investors eagerly await decisions from various central banks and key U.S. economic data releases scheduled for the week. Investors are particularly focused on the upcoming preliminary GDP growth figure for the fourth quarter and the Commerce Department’s personal consumption expenditures (PCE) price index for December. These data points are expected to provide insights into the economy’s health and the potential trajectory of the Fed’s interest rate policy. In the short term, gold’s price movement appears to be in a holding pattern, awaiting further cues from the Federal Reserve regarding interest rate cuts. The market’s current pricing suggests a reduced expectation of rate cuts this year, with the first cut now anticipated in May.