Today’s analysis offers a comprehensive overview of the gold and silver markets, highlighting the key fundamental and technical factors shaping current trends. This report is designed to provide investors with the insights and understanding needed to navigate these markets with confidence.
Gold prices are testing the $3,300 level early Monday, starting a critical week on a bearish note. Traders are closely watching the US-China trade talks scheduled for Monday and the US consumer inflation data release on Wednesday, seeking fresh momentum for gold. The US Nonfarm Payrolls (NFP) report on Friday showed the economy added 139,000 jobs in May, exceeding the expected 130,000 and following a revised 147,000 gain in April. Strong employment figures have tempered expectations of more than two interest rate cuts by the Federal Reserve this year, supporting a cautious Fed stance and strengthening the USD, which weighs on gold prices.
The short-term technical outlook remains bullish for gold. Buyers continue to defend key support around the confluence of the 21-day Moving Average and the Fibonacci Retracement level of the April rally near $3,300. The 14-day Relative Strength Index (RSI) remains above the midline, reinforcing the bullish sentiment.
Gold sellers will need a daily close below $3,287 to challenge support at $3,250. On the upside, buyers are likely to face strong resistance near $3,340, with further resistance at $3,362. A break above this level could open the way toward $3,400. Currently, the short-term Stochastic Oscillator stands at 46 and the RSI at 51, indicating a balanced but cautiously optimistic outlook.
Silver is trading above $36.00 during Monday’s Asian session, maintaining positive momentum despite stronger-than-expected US employment data for May. Investors remain focused on the ongoing US-China trade talks scheduled for later today, which could influence market direction.
Geopolitical and economic uncertainties are supporting silver prices as investors turn to safe-haven assets. Key US officials, including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, are engaging with Chinese counterparts to advance trade discussions.
Additionally, strong industrial demand — particularly for solar panel applications — is driving silver’s value. The Silver Institute reports that silver supply was 15% below demand in 2024, with another supply deficit expected in 2025.
From a technical perspective, the short-term Stochastic Oscillator is at 96, signaling potential overbought conditions, while the Relative Strength Index (RSI) stands at 69, indicating strong upward momentum.
In the dynamic and constantly changing bullion markets, staying updated with both fundamental and technical insights is essential for making informed investment decisions. Our report aims to offer a balanced perspective to help investors confidently navigate the complexities of gold and silver trading.