Today’s analysis offers a comprehensive overview of the gold and silver markets, highlighting key fundamental and technical factors influencing current trends. This report is designed to provide investors with valuable insights to make informed decisions and navigate these markets with confidence.
Gold prices showed some movement on Monday, driven by a slight weakening of the US Dollar. Expectations of a Federal Reserve rate cut continue to pressure the USD, providing support for the XAU/USD pair. Additionally, concerns over potential tariffs under former President Trump’s trade policies and the risk of a global trade war are contributing to gold’s appeal as a safe-haven asset.
Geopolitical developments also play a role, with renewed optimism over a potential Ukraine ceasefire proposed by France and the UK overshadowing recent tensions between US President Donald Trump and Ukrainian President Volodymyr Zelensky. Meanwhile, risk sentiment improved following stronger-than-expected February Manufacturing PMI data. Notably, China’s Caixin PMI rose to 50.8 in February, exceeding January’s 50.1 and surpassing the market forecast of 50.3, further impacting market dynamics.
On the technical front, gold remains near a two-week low amid modest USD strength. The metal closed Thursday below the critical short-term support of the 21-day Moving Average at $2,890, adding downward pressure. However, it remains above the 14-day Relative Strength Index, suggesting buyers are still active. The Stochastics Oscillator stands at 28, while the Relative Strength Index is at 51, indicating a neutral stance with potential for further movement.
Last week, silver declined, breaking strong support in the $31.50–$31.75 range and is now attempting to stabilize above the $31.00 level. The Friday close will be a key factor in determining the trend on weekly charts. In terms of technical indicators, the short-term Stochastics Oscillator stands at 17, indicating oversold conditions, while the Relative Strength Index (RSI) is at 40, suggesting neutral to slightly bearish momentum.
In the dynamic and evolving bullion market, staying updated on both technical and fundamental analysis is essential for making informed investment choices. This report aims to offer a well-rounded perspective, helping investors navigate the complexities of gold and silver trading with confidence.