Daily Gold and Silver Market Analysis- 04 February 2025

04 فبراير 2025
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2831
2772
2813
2801
+12.00
+0.43%
Silver
31.72
30.65
31.55
31.30
+0.25
+0.80%

Today’s analysis offers a detailed examination of the gold and silver markets, highlighting the fundamental and technical factors shaping current trends. Our report is designed to provide investors with the insights necessary to navigate these markets successfully.

 

Fundamental Analysis

Gold prices have attracted buyers for the fourth consecutive day amid concerns over Trump’s tariffs. Anticipation of further rate cuts from the Federal Reserve, along with inflation worries, is benefiting the XAU/USD pair. However, rebounding US bond yields and a slight uptick in the USD may limit gains for the commodity. If the upcoming US JOLTS Job Openings data, expected to show around 8 million for December, disappoints, along with the forthcoming comments from Fed officials, selling interest in the Greenback could increase, allowing gold to challenge its record highs.

Recently, Trump imposed a 25% tariff on Canada and Mexico, and a 10% levy on China, justifying these measures as necessary to combat illegal immigration and drug trafficking. This tariff escalation has unsettled markets, prompting a ‘sell everything’ response, with the USD emerging as the sole beneficiary.

Gold

The daily chart suggests caution for gold bulls, as the 14-day Relative Strength Index (RSI) is now in the overbought territory, currently near 71. This could make further upward movement challenging, with a pullback likely before the uptrend can resume. Should a correction occur, gold prices may test the $2,795 support level, and a breach of this could lead to the previous day’s low of $2,770 being challenged. Additional declines could put the January 30 low of $2,754 at risk. Nevertheless, the Bull Cross of the 50-day and 100-day Moving Averages keeps hope alive for buyers. On the upside, gold needs a sustained move above the all-time high of $2,831 to target the psychological level of $2,850. Currently, the Stochastic Oscillator is at 88, and the RSI stands at 71, indicating potential overextension in the market.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2750
2770
2795
2815
2830
2850
2870

Silver

Silver tested resistance between $31.45 and $31.72 yesterday, as traders responded to the strong performance in gold markets. A successful breakout above $31.72 could drive silver towards the next resistance level at $32.00 to $32.40. Currently, the short-term Stochastic Oscillator is at 86, while the Relative Strength Index (RSI) is at 60, indicating that silver is maintaining bullish momentum.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
30.31
30.66
31.00
31.45
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
JOLTS Job Openings
7:00pm
7.60M
8.01M
8.01M

Conclusion

In the dynamic and complex landscape of bullion markets, it is essential to stay informed through both technical and fundamental analysis to make informed investment decisions. Our report aims to provide a balanced perspective to help investors navigate the intricacies of trading gold and silver 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.