Gold Technical Report: Gold declined yesterday after moving out of the narrow range maintained for 3 sessions earlier. 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 22 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 45 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices witnessed a bounceback for second straight session and crossed above10 days EMA on intra day basis. However it could not sustain and closed below it in the end. If this is regained, next main hurdle will be around 23.40 where all 50,100 and 200 days Exponential Moving Averages are merging. The Short term Stochastics Oscillator is at 51 and Relative Strength Index near 44.
Fundamental Report: Gold Investors are relying on upcoming economic reports, which the Federal Reserve will use to make its monetary policy decisions regarding the timing and depth of rate cuts this year. On Thursday, the Commerce Department will release its initial GDP estimate. Economists that were surveyed by the Dow Jones are forecasting that the total of all goods and services produced by the United States will have grown at a pace of 1.7% for the final quarter of 2023. This would indicate a large contraction in the GDP, the slowest since the 0.6% decline that occurred in the second quarter of 2022. On Friday, the Bureau of Economic Analysis will release its latest information on inflation, releasing the PCE (Personal Consumption Expenditures Price Index) for December. Expectations for the core PCE is that prices will increase by 0.2% for the month and 3% year-over-year. The importance that data plays in guiding future decisions by the Federal Reserve was made clear by Chicago Fed President Austan Goolsbee.