Gold Technical Report: Gold traded in narrow range yesterday and registered a red DOJI after it finshed last week on a positive note, as prices moved up from the support of 50 days Exponential Moving Average @ 2020. Last week, gold maintained upmove and looks confident after it has reclaimed the psychological mark of 2000 and also the 100 days Exponential Moving Average @ 2004 recently. The recent price swings are contained in the range recorded by extreme points 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 83 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 54 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also declined parallely coming off from the day high near 50 days DMA and closed below 10 days EMA. Last week it has been on a constant decline mode and has given up half the gains it made earlier week. The recent upmoves were capped around 23.40, near 200 days Exponential Moving Average. The Short term Stochastics Oscillator is at 46 and Relative Strength Index near 48.
Fundamental Report: The Gold prices, reacted in response to growing concerns over sustained high U.S. interest rates, ahead of crucial economic data releases. Despite a lack of significant movement due to Fed officials’ hints at maintaining current rate levels, gold’s safe-haven appeal amid recession fears in Japan and the UK, and Middle East tensions. The past week in the gold market was significantly shaped by the Federal Reserve speakers, including Fed Governor Christopher Waller and Fed Governor Lisa Cook, emphasizing the need for more evidence of cooling inflation before considering rate reductions. U.S. Treasury yields were mostly lower last week, reflecting investor uncertainty about the future of interest rates. The U.S. dollar index, after a two-month rally, posted its first weekly fall in 2024. This shift came as investors adjusted their expectations for the timing and extent of the Fed’s rate cuts, now foreseeing a potential start in June rather than May, with fewer cuts anticipated than previously priced into the market. In the upcoming week, the gold market is likely to be influenced by key economic reports, most notably the Personal Consumption Expenditures (PCE) data. This report could provide critical insights into inflation trends and consumer spending, potentially shaping the Fed’s policy decisions.