Daily Gold and Silver Market Analysis- 14 January 2025

14 January 2025
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2693
2656
2662
2689
-27.00
-1.00%
Silver
30.53
29.49
29.60
30.40
-0.80
-2.63%

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 needed to navigate these markets effectively.

 

Fundamental Analysis

Gold is experiencing some pressure due to persistent demand for the US Dollar. It reached a multi-week high of $2,697.88 on Friday, driven by a strong monthly employment report from the United States, which heightened risk aversion. The Nonfarm Payrolls (NFP) report revealed that the country added 256,000 jobs in December, while the unemployment rate dipped to 4.1%. These figures are encouraging, and average hourly earnings also increased by 3.9%, down from the previous 4%. Together, these indicators suggest that the Federal Reserve may maintain its current stance for a longer period.

While demand for safety benefited both gold and the dollar at the end of last week, ongoing USD demand has begun to weigh on XAU/USD, which is now trading around $2,665. Looking ahead, the focus this week will be on inflation, with fresh Consumer Price Index (CPI) figures set to be released by both the UK and the US next Wednesday. Market participants are also awaiting updates on tariffs from President-elect Donald Trump.

Gold

Despite some selling pressure, a significant decline in gold prices appears unlikely. On January 8, gold confirmed an upside breakout from a month-long symmetrical triangle pattern, reinforcing the current 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, supporting the potential for further upside in gold prices. The Stochastic Oscillator is currently at 72, while the Relative Strength Index stands at 54.

 

 

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2600
2615
2643
2668
2690
2727
2760

Silver

Silver is facing significant pressure as the gold/silver ratio rises above the 89.50 level. If this ratio climbs above 90, silver could experience increased downside momentum. A drop below the $29.50 mark would likely direct silver toward support in the $28.79 to $29.00 range. Conversely, if silver manages to reclaim the $30.00 level, it may target $30.41. Currently, the short-term Stochastic Oscillator is at 58, while the Relative Strength Index (RSI) sits at 45.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
28.79
29.00
29.33
29.66
30.00
30.23
30.41

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
Core PPI m/m
5:30pm
0.0%
0.2%
0.2%
PPI m/m
5:30pm
0.2%
0.4%
0.4%
Federal Budget Balance
11:00pm
-86.7B
-67.6B
-366.8B

Conclusion

In the dynamic and multifaceted world of bullion markets, it is essential to stay informed through both technical and fundamental analysis to make sound 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.