Gold Technical Report: Gold played in a narrow band on Friday and closed with a red DOJI candle signifying indecision. The movement was mainly restricted betwwen 10 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 32 (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 looked in a consolidation mood after a small rally of 3 straight sessions and closed above10 days EMA. If uptrend continues, next main hurdle will be around 23.35 where all 50,100 and 200 days Exponential Moving Averages are merging. The Short term Stochastics Oscillator is at 58 and Relative Strength Index near 46.
Fundamental Report: Last week, GDP report revealed a robust economy in the U.S. which grew at a rate of 3.3% in Q4. Analysis of the report indicates that the recent restrictive monetary policy of the Federal Reserve has made an impact on inflation, in tandem with an unexpected resilience in the U.S. economy. Geopolitical tension in the Red Sea continues to accelerate, with a report today revealing that Houthi militants fired a ballistic missile at the USS Carney in the Gulf of Aden on Friday. Although the ballistic missile was successfully shot down, it represents the 37th strike on merchant and U.S. Navy ships since November 19. Gold prices are sensitive to both inflation and geopolitical conflict. However, in the case of today, it seems as though market participants are laser-focused on next week’s first FOMC meeting of the year. While it is widely acknowledged that the Federal Reserve will pivot and begin to cut interest rates this year, the first rate cut will most likely not occur this month, or at the March FOMC meeting.