Gold Technical Report: Gold yesterday, for the first time in last 25 odd days ended below the 10 DMA around 1926. Till, the 50DMA @ 1833 is trading over 200 DMA @ 1776, the medium term trend looks intact. The long term support stands at 200 DMA below which the trend may turn bearish. The short term Stochastics Oscillator is at 42 and Relative Strength Index is at 60.
Silver Technical Report: The silver prices, after the selling pressure on Friday last week registered a DOJI. The medium term trend looks up as the prices continue to trade above 50 DMA @ 23.18. As 50 DMA has crossed above 200 DMA @ 20.97 on daily charts, gives indication of Buy on Dip. The Short term Stochastics Oscillator is at 55 and RSI momentum near 48.
Fundamental Report: The market players get jitters before Fed steals the spotlight on Wednesday with markets more or less pricing in a 25 basis-point hike, action that would move the Federal Funds target range to between 4.50% and 4.75%. 2022 witnessed a mammoth policy tightening schedule out of the Fed, raising 425 basis points from 0.25% to 4.50%. In fact, this was the largest bout of policy tightening seen in 40 years, consisting of four eye-watering 75 basis-point hikes during Q3 and Q4. December’s meeting observed that the central bank slowed to a 50 basis-point increase, with this week’s meeting expected to slow once more to 25 basis points. The slowdown in policy tightening is considered warranted given the disinflationary phase the US economy is in—consumer prices are increasing but at a slower pace. The key takeaway from Friday’s PCE inflation index report was that the core PCA index declined in December by 0.3%. The preferred inflation index used by the Federal Reserve was at 4.7% year-over-year in November and declined to 4.4% year-over-year last month. will be critical components used by the Federal Reserve next week and will most likely strengthen the conviction of hawkish Fed officials to maintain their extremely aggressive monetary policy. Thursday is a big one for the BoE and the ECB. The BoE dominates the limelight midday GMT, widely expected to increase the Bank Rate by 50 basis points, a move that would pull the rate to 4.00%. Annual inflation in the UK remains in double figures. According to the Office for National Statistics (ONS), in the 12 months to December consumer prices increased by 10.5%, down from November’s 10.7% rate and October’s peak of 11.1%.