Today’s report offers an in-depth examination of the gold and silver markets, highlighting the key fundamental and technical factors shaping current trends. Our goal is to equip investors with the insights and understanding necessary to navigate these markets confidently and effectively.
On Monday, gold prices climbed for the third consecutive day, refocusing on the key $3,400 per troy ounce level. This upward momentum is supported by renewed demand for the US dollar, while the mixed signals in US Treasury yields across different maturities continue to provide strength to the precious metal.
Geopolitical tensions have also contributed to gold’s safe-haven appeal. Recently, former Russian President Dmitry Medvedev responded to President Trump’s deployment of two nuclear submarines near Russia, warning that each ultimatum could be seen as a threat and a step toward war. This escalation risk amid the ongoing Russia-Ukraine conflict adds further support to gold, helping to limit any potential price declines.
Last week’s breakout above the $3,330 horizontal resistance and subsequent strength beyond the 100-period Moving Average on the 4-hour chart favors bullish momentum for XAU/USD. Oscillators on this chart have shown positive traction, supporting the case for dip-buying opportunities around the commodity.
Given this outlook, a buy-on-dips strategy appears prudent. Currently, the short-term Stochastics Oscillator is at 59, and the Relative Strength Index (RSI) stands at 53, indicating moderately bullish momentum.
Silver signaled an uptrend last Friday and has continued to move upward since. This momentum is supported by bullish sentiment in gold, driven by ongoing uncertainties around trade and tariffs between the U.S. and its key partners. Additionally, silver’s demand as both a safe-haven asset and an industrial metal remains sensitive to upcoming Federal Reserve policy decisions.
On the technical side, the short-term Stochastics Oscillator stands at 36, while the Relative Strength Index (RSI) is at 50, indicating a neutral to mildly bullish outlook.
Stochastics Oscillator: A momentum indicator that compares a security’s closing price to its price range over a specific period. Readings above 80 typically indicate overbought conditions, while readings below 20 suggest oversold levels.
Relative Strength Index (RSI): An indicator that measures the speed and magnitude of recent price changes to assess market conditions. A value above 70 signals overbought conditions, while a reading below 30 indicates oversold territory.
In the dynamic and constantly shifting bullion markets, staying informed through both technical and fundamental analysis is essential for making sound investment decisions. This report aims to offer a balanced perspective, helping investors better navigate the complexities of gold and silver trading.