Daily Gold and Silver Market Analysis- 13 January 2025

13 January 2025
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2698
2664
2689
2670
+19.00
+0.71%
Silver
30.70
29.95
30.40
30.12
+0.28
+0.92%

Today’s analysis delivers a comprehensive examination 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 started the week on a weaker note, retreating from a one-month high reached on Friday. Factors such as hawkish expectations from the Federal Reserve, rising U.S. bond yields, and a strong U.S. dollar are weighing on the precious metal. However, the prevailing risk-off sentiment may provide support to the safe-haven XAU/USD pair, potentially limiting further losses.

Markets are cautious about the potential trade policies of U.S. President-elect Donald Trump and their implications for inflation and the broader economy, enhancing the safe-haven appeal of gold. Additionally, the recent surge in WTI oil prices contributes to inflation concerns in the Trump 2.0 era, further supporting gold as an inflation hedge. On Friday, oil prices spiked following U.S. Treasury sanctions on Russian oil supplies, which are expected to impact crude exports to major buyers like China and India.

The Labor Department’s NFP report revealed that the U.S. economy added 256,000 jobs in December, surpassing November’s 227,000 and the anticipated 160,000. The unemployment rate unexpectedly fell to 4.1%, compared to an expected steady rate of 4.2%.

Gold

The daily chart indicates that, despite some profit-taking, gold buyers remained resilient, extending the breakout from a symmetrical triangle pattern. On January 8, gold prices confirmed an upside break from this month-long pattern, reinforcing the prevailing bullish momentum. The 10, 50, and 100-day Exponential Moving Averages are aligned, and the 14-day Relative Strength Index remains comfortably above the midline, suggesting further potential for price increases. The Stochastic Oscillator is at 89, while the Relative Strength Index stands at 60.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2615
2642
2664
2690
2727
2760
2788

Silver

Silver prices are trending upward, bolstered by the strong performance of gold. However, the gold/silver ratio has risen back above the 88.50 level, raising concerns for bullish investors. If silver can establish a base above the $30.00 mark, it may target $30.83. Currently, the short-term Stochastic Oscillator is at 80, while the Relative Strength Index (RSI) is at 51.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
29.33
29.66
30.00
30.23
30.41
30.83
31.18

Indicator Definitions

  • Stochastics Oscillator: A momentum indicator that compares a closing price to its price range over a specified period. It identifies potential overbought conditions when readings exceed 80 and oversold conditions when they drop below 20.
  • Relative Strength Index (RSI): A tool that measures the magnitude of recent price changes to assess whether an asset is overbought or oversold. Values above 70 indicate overbought conditions, while readings below 30 suggest oversold conditions.
Key US Economic Reports & Events
When
Actual
Expected
Previous
No Important Data

Conclusion

In the intricate and constantly changing world of bullion markets, keeping up with both technical and fundamental analysis is essential for making informed investment decisions. Our report aims to offer a balanced perspective to help investors navigate the complexities of gold and silver trading.

Disclaimer This report is for informational purposes only and is based on data from reputable sources. It is not intended to serve as investment advice. ISA BULLION does not guarantee the accuracy or completeness of this report and disclaims any liability for losses resulting from reliance on its contents. Readers are encouraged to conduct their own research and seek advice from professional advisors before making investment decisions. ISA BULLION, along with its directors, partners, officers, employees, and agents, expressly disclaims responsibility for any direct or indirect loss or damage arising from the use or reliance on the information provided herein.