Daily Gold and Silver Market Analysis- 03 February 2025

03 February 2025
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2817
2792
2800
2797
+3.00
+0.11%
Silver
31.73
31.16
31.34
31.64
-0.30
-0.95%
Today’s analysis offers a comprehensive overview of the gold and silver markets, highlighting the fundamental and technical factors influencing current trends. Our report is designed to empower investors with the insights necessary to navigate these markets successfully.

Fundamental Analysis

Gold prices are retreating from recent record highs due to a broad rally in the US Dollar (USD). Concerns over new trade tariffs proposed by Trump are providing some support to the XAU/USD pair, while expectations for further policy easing from the Federal Reserve are helping to limit losses in the commodity. Amid rising panic and uncertainty, investors have adopted a ‘sell everything’ approach, gravitating towards the USD, which has overshadowed gold’s traditional role as a safe haven. As traders take profits after last week’s record highs in gold, they are doing so to offset losses in other financial assets.

Gold

The short-term technical outlook for gold remains positive as long as the 14-day Relative Strength Index (RSI) stays above 50, currently at approximately 63.50. Supporting this bullish sentiment, the 50-day and 100-day Simple Moving Average (SMA) Bull Cross is still intact. For gold to retest its all-time high of $2,817, it needs a sustained move above the $2,800 mark, with the next resistance level at the psychological barrier of $2,850. On the downside, a prolonged correction could test the January 30 low of $2,754, and if that fails, the previous week’s low of $2,731 could provide support. The key support level is at the 21-day SMA, currently at $2,721. The Stochastic Oscillator is at 69, while the RSI is at 64, indicating a generally constructive outlook for gold in the near term.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2730
2750
2770
2787
2810
2830
2850

Silver

Silver’s first downside target is set at $30.60, aligning with the 100-period Exponential Moving Average (EMA). Should prices decline further, the next key level to watch is $30.40, which marks the lower boundary of the Bollinger Band. Prolonged losses could lead to a drop to the psychological level of $30.00, followed by the January 13 low at $29.50.

On the bullish side, immediate resistance is found at $31.72, the high from January 31. The next significant hurdle lies in the $31.90-$32.00 range, which represents both the upper limit of the Bollinger Band and a round number. Currently, the Stochastic Oscillator is at 66, and the Relative Strength Index (RSI) is at 56, indicating a moderately positive outlook in the short term.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
30.00
30.40
30.80
31.10
31.72
32.00
32.40

Indicator Definitions

  • Stochastics Oscillator: This indicator measures momentum by comparing a closing price to its price range over a specific period. It indicates overbought conditions when above 80 and oversold conditions when below 20.
  • Relative Strength Index (RSI): The RSI evaluates price changes to identify overbought or oversold conditions. A reading above 70 signifies overbought conditions, while a reading below 30 indicates oversold conditions.
Key US Economic Reports & Events
When
Actual
Expected
Previous
Final Manufacturing PMI
6:45pm
51.2
50.1
50.1
ISM Manufacturing PMI
7:00pm
50.9
49.3
49.3
ISM Manufacturing Prices
7:00pm
54.9
52.6
52.5

Conclusion

In the dynamic and complex landscape of bullion markets, it’s essential to stay informed through both technical and fundamental analysis for making sound investment decisions. This report aims to offer a balanced perspective to help investors navigate the intricacies of gold and silver trading effectively.

Disclaimer This report is intended for informational purposes only and is based on data from reputable sources. It does not constitute investment advice. ISA BULLION makes no guarantees regarding the accuracy or completeness of the report and disclaims any liability for losses that may result from reliance on this information. Users are encouraged to conduct their own research and consult with professional advisors before making investment decisions. ISA BULLION, along with its directors, partners, officers, employees, and agents, expressly disclaims any responsibility for any direct or indirect losses or damages arising from the use or reliance on the information presented herein.