Today’s analysis offers a comprehensive overview of the gold and silver markets, delving into the key fundamental and technical factors shaping current trends. This report is designed to provide investors with the essential insights required to navigate these markets with confidence.
Although there has been a recent pause in the price rebound for gold, the escalating US-China trade tensions are expected to sustain demand for safe-haven assets like gold. The trade conflict between the US and China is intensifying, with China positioning itself to strengthen trade ties with the European Union, indirectly targeting US companies, as reported by the Wall Street Journal. This development follows a Wednesday announcement by US President Donald Trump, who declared a 90-day “pause” on reciprocal tariffs of 10% for all countries except China. Trump also increased the tariff rate on China to 125%, effective immediately. In retaliation, Beijing imposed additional tariffs of 84% on American goods, up from 34%, in response to Trump’s 104% tariffs. Amid this ongoing tariff battle, market uncertainty remains high, prompting investors to continue seeking refuge in gold as a traditional store of value, especially with the upcoming US CPI inflation data on the horizon.
On the technical front, the daily chart suggests a favorable outlook for gold buyers, with the 14-day Relative Strength Index (RSI) remaining above the midline. On Wednesday, gold prices bounced back from a recent dip, aiming for a recovery and eyeing the $3,150 psychological resistance level. The next target for buyers is the record high of $3,168, followed by the $3,200 mark. The Stochastic Oscillator stands at 50, while the RSI is at 61, indicating potential for further upward momentum.
Silver is attempting to recover from the substantial selling pressure observed in recent trading sessions. The metal experienced a sharp sell-off as traders anticipated that the tariffs imposed by Trump would significantly impact the global economy. Given silver’s role as an industrial metal, it is more vulnerable to economic turmoil compared to gold, which is primarily seen as an investment and inflation hedge. In the short term, the Stochastic Oscillator stands at 48, while the Relative Strength Index (RSI) is at 41, signaling that silver may still be in a consolidative phase, with potential for further volatility.
In the dynamic and constantly shifting bullion markets, staying informed through both technical and fundamental analysis is essential for making sound investment decisions. Our report aims to offer a balanced perspective, helping investors navigate the complexities of gold and silver trading with greater confidence and insight.