Gold Technical Report: Gold marched upwards yesterday for second straight session against a red DOJI candle signifying indecision posted on Friday. The movement was supported by 50 and 10 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 55 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 56 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices witnessed profit booking and ended with a red DOJI but carefully managing the support near 10 days EMA. The upmove was capped around 23.40 where all 50,100 and 200 days Exponential Moving Averages are merging. The Short term Stochastics Oscillator is at 70 and Relative Strength Index near 50.
Fundamental Report: Gold markets are witnessing buoyancy influenced by a combination of lower U.S. Treasury yields, a slight decline in the U.S. Dollar, and increasing geopolitical tensions in the Middle East. The upcoming Federal Reserve’s two-day meeting is eagerly anticipated by the market for potential cues. The recent drop in Treasury yields, reaching a two-week low, coupled with a 0.1% fall in the U.S. Dollar Index (DXY), are key factors contributing to gold’s rise. These elements are making gold more appealing by reducing the opportunity cost of holding non-yielding assets. Moreover, the intensifying tensions in the Middle East are heightening gold’s appeal as a safe-haven asset, although the extent to which this is impacting market positioning ahead of the Fed’s meeting remains uncertain. The market is closely observing the U.S. central bank’s upcoming decision on key policy rates and statements from Chair Jerome Powell. These are expected to significantly steer gold’s future direction. The current state of anticipation is keeping gold prices stable, with a slight uptick expected owing to the geopolitical uncertainties.