Gold Technical Report: Gold prices remained rangebound on Friday. The prices made an intra day high above the conjunction point of 50 days EMA and 100 days EMA near 1928 abut then slipped down but still managed to close above the 10 days EMA @ 1923. Now, next support is near 200 days EMA @ 1912 and major resistance lies near 1951 Horizontal TrendLine touchpoint. The short term Stochastics Oscillator is at 44 (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 marched ahead on Friday after a volatile session a day before. It opened above 10 days EMA @ 23.30 and moved up to make a day high near 23.75. However in the second half, it retraced back to close near the conjunction point of 50 days EMA and 100 days EMA near 23.50. Major support is near 200 days EMA @ 23.08. The Short term Stochastics Oscillator is at 74 and Relative Strength Index near 52.
Fundamental Report: While it was correctly assumed that the Fed would pause rate hikes at last week’s FOMC meeting, the updated dot plot has in a way changed the upcoming scenario. The CME’s FedWatch tool predicted a 99% probability that the Fed would not raise rates this month. However, regarding rate cuts, they revised the number of rate cuts next year from four to two. This unseen revision to the Federal Reserve’s monetary policy sent shockwaves through the financial markets at large. The takeaway from the reduction in future rate cuts was that Federal Reserve members are committed to tackling the high levels of inflation. The new projections indicate that the Fed intends to keep its terminal rate above 5% throughout the entire calendar year of 2024. Gold had been gaining value for the previous five consecutive trading days to Wednesday’s FOMC conclusion. However prices reverted back as Chairman Powell began his opening remarks at the press conference, he holds after every FOMC meeting. This was unexpected and took a day to sink in as seen in the financial markets across the board.