Today’s analysis takes a deep dive into the gold and silver markets, exploring the key fundamental and technical factors shaping current trends. This report is designed to provide investors with valuable insights to navigate these markets with confidence.
Gold prices continue their sideways consolidation during the Asian session on Monday, supported by concerns over Trump’s trade policies and growing expectations of a Federal Reserve rate cut. The US dollar remains near a multi-month low, providing additional support for XAU/USD.
Uncertainty surrounding tariffs and the Ukraine peace deal has heightened fears of potential stagflation in the US, especially following Friday’s February labor market report. The US economy added 151,000 jobs, falling short of the expected 160,000, with the previous figure revised downward to 125,000. Meanwhile, the Unemployment Rate rose to 4.1%, exceeding the forecasted 4%, while the Labor Force Participation Rate edged down to 62.4% from January’s 62.6%.
Gold prices remain within a familiar trading range above the $2,900 mark. The daily chart shows that gold is holding above the 21-day Moving Average (MA) of $2,911, indicating support during the consolidation phase. A renewed uptrend could emerge if the price breaks and holds above the $2,934 static resistance on a daily candlestick close.
The Relative Strength Index (RSI) has slightly declined but remains above 50, signaling that bullish momentum is still intact. Additionally, the Stochastics Oscillator sits at 64, while the RSI is at 58, reinforcing the potential for further upside if key resistance levels are breached.
Silver ended Friday’s session flat, offering little indication of its next directional move. Meanwhile, the gold/silver ratio is approaching the 90.00 level, suggesting relative strength in gold compared to silver.
If silver drops below the $32.08 support level, it could extend losses toward the next key support zone between $31.00 and $31.75. On the technical side, the short-term Stochastics Oscillator stands at 71, while the Relative Strength Index (RSI) remains at 57, indicating a moderately bullish bias but lacking strong momentum for a decisive move.
In the dynamic and ever-changing bullion markets, staying informed through both technical and fundamental analysis is essential for making sound investment decisions. This report aims to offer a well-rounded perspective, helping investors navigate the complexities of gold and silver trading with confidence.