Gold Technical Report: Gold moved up with conviction and came out of upper range maintained by the market for last few sessions, holding support near 10 days Exponential Moving Average strongly. 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 91 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 62 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices witnessed correction on profit booking ahead of holiday season but managed to maintain level above the support of 10 days Exponential Moving Average. Last to 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 88 and Relative Strength Index near 57.
Fundamental Report: Throughout 2023, the gold (XAU/USD) market navigated a series of significant global events that greatly influenced its value. Key among these were the banking crisis and geopolitical tensions. The collapse of Silicon Valley Bank and subsequent bank failures, part of the largest wave of such events since the 2008 financial crisis, triggered a rush towards gold as a safe havens. This led to gold prices surging above $2,000. At the same time, escalating tensions from the Middle East conflict further heightened gold’s appeal. The dual impact of financial system distress and geopolitical instability underscored gold’s role as a stable investment during tumultuous times. The banking crisis, marked by the largest total asset failure in a single year, and the Israel-Hamas conflict, created an atmosphere of uncertainty and fear, leading to increased demand for gold. Investors gravitated towards gold as a protective asset, reinforcing its status as a safe-haven during periods of economic and geopolitical turmoil. This period of instability led to significant fluctuations in gold prices, highlighting its importance in a diversified investment portfolio. Looking towards 2024, the U.S. economy is anticipated to continue its expansion, buoyed by strong consumer spending and sustained private investment. The Federal Reserve’s signals of potential rate cuts suggest a shift towards a more accommodating monetary policy, amidst a backdrop of easing inflation. This evolving monetary environment is poised to influence the gold market, as investors recalibrate their strategies in response to the changing economic landscape.