In today’s analysis, we take a closer look at the gold and silver markets, exploring the fundamental and technical drivers behind current trends. This report is designed to give investors the insights they need to navigate these markets with confidence.
Gold remains steady as markets weigh Fed rate-cut expectations against growing geopolitical risks and tariff concerns. Renewed fears over the potential economic impact of President Donald Trump’s latest round of tariffs on a wide range of goods, coupled with rising geopolitical tensions, continue to support demand for the safe-haven metal. At the same time, upbeat US macroeconomic data released on Thursday has added uncertainty about the pace of future Fed rate cuts, which may limit aggressive bullish positioning ahead of the upcoming US Personal Consumption Expenditure (PCE) Price Index release.
Gold has recovered from a modest Asian session dip and is now trading just below the $3,750 level, largely unchanged for the day. The recent strong rally has pushed through overbought conditions, and continued dip-buying indicates that the path of least resistance remains upward. However, the overnight rejection near the $3,800 mark may hint at early signs of bullish exhaustion. A break below the $3,750 area could open the way to test the $3,705–$3,680 support zone. Meanwhile, XAU/USD bulls may wait for a sustained move above the $3,800 level before attempting to extend the uptrend seen over the past month. Short-term technical indicators show the Stochastics Oscillator at 77 and the Relative Strength Index (RSI) at 73.
Silver surged past the $45.00 per troy ounce mark on Thursday, showing strong momentum. Despite being a non-yielding asset, it continues to hold appeal both as an industrial metal and an alternative investment. Short-term technical indicators show the Stochastics Oscillator at 93 and the Relative Strength Index (RSI) at 77.
● Stochastics Oscillator: A momentum indicator that compares a closing price to its recent trading range. Readings above 80 suggest overbought conditions, while readings below 20 indicate oversold levels.
● Relative Strength Index (RSI): Measures the speed and magnitude of price movements to assess overbought or oversold conditions. Values above 70 indicate overbought, while readings below 30 suggest oversold.
In the dynamic and constantly changing bullion markets, keeping track of both technical and fundamental developments is essential for making informed investment decisions. This report aims to offer a balanced perspective, helping investors navigate the complexities of gold and silver trading with confidence.