Today’s analysis offers a comprehensive examination of the gold and silver markets, highlighting key fundamental and technical factors influencing current trends. Our report is designed to provide investors with valuable insights, enabling them to make informed decisions and navigate these markets with confidence.
Gold continues its record-breaking rally for the fourth consecutive day, fueled by escalating global trade tensions and geopolitical risks. Concerns over a widening trade war and speculation surrounding U.S. President Donald Trump’s tariff plans on ‘Liberation Day,’ April 2, have driven investors toward the safe-haven metal. The looming threat of a full-scale tariff war could heighten inflationary pressures, potentially leading to stagflation. These fears have put pressure on the U.S. Dollar (USD) and Treasury bond yields, further supporting gold’s ascent to fresh all-time highs.
Gold closed above $3,100, setting a new record high as its extended rally continues after surpassing the ascending triangle target of $3,080 last Friday. However, with the 14-day Relative Strength Index (RSI) now deep in overbought territory above 75, caution is warranted. If a pullback occurs, the immediate support lies at the $3,100 psychological level, followed by $3,050. On the upside, if bullish momentum persists, the next key resistance stands at $3,150. A sustained move above this level could trigger further gains, with $3,200 as the next upside target. The Stochastics Oscillator is at 95, and the RSI is at 78.
Silver retreated as the gold/silver ratio surged toward the 92 level. If the ratio breaks above 92, silver could face additional downward pressure. A drop below the $33.50 mark may drive the price toward the next support zone at $32.75 – $33.00. The short-term Stochastics Oscillator stands at 70, while the Relative Strength Index (RSI) is at 60.
Navigating the ever-changing bullion markets requires a deep understanding of both technical and fundamental factors. Staying informed is key to making well-calculated investment decisions. This report aims to provide a comprehensive perspective, helping investors effectively manage the complexities of gold and silver trading.