Gold Technical Report: Gold managed some retracement yesterday after facing decline for 2 straight sessions earlier. It started the week on a weaker note, taking a clue from Friday’s market action which hinted at downfall after 4 continuous bullish sessions earlier. Yesterday it bounced from the support of 50 days Exponential Moving Average and closed near 10 DMA. 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 45 (it is considered overbought when above 80 and oversold when below 20) and Relative Strength Index (RSI) is at 51 (it is considered overbought when above 70 and oversold when below 30).
Silver Technical Report: Silver prices traded in a narrow range after 2 days of decline, pressured below 10 days EMA. The upmove was 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 31 and Relative Strength Index near 40.
Fundamental Report: The Gold prices are currently hovering near a two-week low, primarily pressured by a robust U.S. dollar and rising Treasury yields. This trend follows a strong U.S. jobs report and Federal Reserve officials’ comments, which have significantly reduced expectations for early interest rate cuts. The dollar’s strength, particularly evident as it nears a three-month high, and the climb in 10-year Treasury yields to over a one-week high, are key factors influencing gold’s current performance. The Federal Reserve’s current stance, as indicated by recent remarks from officials including Minneapolis Fed President Neel Kashkari and Fed Chair Jerome Powell, suggests a cautious approach towards rate cuts. This prudence, rooted in a resilient U.S. economy and potential adjustments in the neutral rate of interest, is leading to a reassessment of the timing for any potential rate reductions. Consequently, gold, typically a safe-haven asset, is facing downward pressure as traders adjust their expectations. Despite geopolitical uncertainties that could spur safe-haven demand, the prevailing economic indicators and Fed’s cautious stance are likely to keep gold prices subdued. Investors and traders will be closely monitoring upcoming remarks from Fed officials for further insights into the central bank’s policy direction and its implications for the gold market.central banks future monetary policy plans and most importantly, confirmation of when the first rate cut will come.