Gold Technical Report: Gold prices continued decline for third straight session as it came off from the high near 10 days Exponential Moving Average. However it managed to close above the support of 50 Days EMA. The recent 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 30 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 46 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices witnessed a pullback on Friday and registered a green DOJI to close near 10 days EMA. The recent upmoves were capped around 23.40 last week where all 50,100 and 200 days Exponential Moving Averages are clustering. The Short term Stochastics Oscillator is at 56 and Relative Strength Index near 49.
Fundamental Report: The Gold prices concluded the week at $2024, marking a 0.75% decrease. The week was characterized by a stronger dollar and higher Treasury yields, directly influencing gold prices. The U.S. Dollar Index witnessed a modest rise, reaching a 12-week peak at 104.604. Concurrently, the U.S. 10-year Treasury yield climbed to 4.177%, its highest in two months. These factors collectively made gold more expensive for holders of other currencies and pressured gold prices downward. The week also saw reactions to the solid U.S. jobs report from February 2, which showed robust job growth and wage gains. This data dampened the prospects of a Fed rate cut in the near term, influencing gold market sentiment. Additionally, revisions to the U.S. Consumer Price Index (CPI) offered mixed signals but maintained an overall trend of slowing inflation, a factor critical in the Fed’s decision-making process. The upcoming U.S. CPI report, due on Tuesday, is the focal point for next week’s gold trade. The market anticipates a 0.2% increase in January’s CPI, mirroring December’s growth, with a yearly rise forecasted at 2.9%. The core CPI is also expected to show a 0.3% increase. These figures will be pivotal in shaping the Federal Reserve’s policy outlook, thereby influencing gold prices.