Gold Technical Report: Gold traded in narrow range yesterday and registered a DOJI. Last week it traded on a positive note, as prices moved up from the support of 50 days Exponential Moving Average @ 2020. The upmove 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 79 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 53 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices also declined further after off from the day high near 10 days EMA @ 22.72. 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 33 and Relative Strength Index near 44.
Fundamental Report: The Gold prices, prefer to stay neutral as on Thursday the government will release the PCE price index, the Fed’s preferred inflation gauge. Forecast for the upcoming report are indicating that inflation will increase to a larger degree than formerly anticipated. Multiple Fed officials have suggested that the US central bank is in no rush to cut rates. However, if Thursday’s report comes in higher than expected the Federal Reserve will certainly re-evaluate their current their monetary policy. This would send huge ripples throughout the financial markets that are anticipating rate cuts coming no later than June. If the report shows a strong increase in core inflation, they could even reopen discussions of rate hikes rather than rate cuts. The Federal Reserve’s actions are data dependent and a strong shift in the data would necessitate a redefinition of their current anticipated timeline for rate cuts this year.