Today’s analysis offers a comprehensive overview of the gold and silver markets, highlighting key fundamental and technical factors shaping current trends. This report is designed to equip investors with valuable insights to navigate the markets with confidence.
Gold prices remain under pressure for the third consecutive day, driven by a mix of geopolitical and macroeconomic factors. Signs of easing tensions between the U.S. and China, along with a modest uptick in the U.S. Dollar (USD), have contributed to the selling momentum in the precious metal.
Despite the USD’s recent strength—fueled by President Trump’s optimistic comments about potential trade agreements with India, South Korea, Japan, and China—expectations of aggressive Federal Reserve rate cuts may limit the dollar’s upside and help cushion gold’s losses.
Markets appeared largely indifferent to the U.S. Senate’s rejection of a bipartisan effort to block Trump’s tariffs and the lack of confirmed trade negotiations with China, as noted by U.S. Trade Representative Jamieson Greer.
Gold briefly surged past $3,300 following disappointing U.S. GDP and inflation figures but quickly gave back gains after Trump’s conciliatory remarks softened the market’s reaction to the weak economic data.
Gold has gained positive traction, rebounding from a two-week low set on Thursday. This comes after the metal broke below a three-week ascending channel on Wednesday, signaling a temporary correction.
Currently, the price is attempting to stabilise above the $3,280 level. A confirmed acceptance above this mark could trigger further upside, with the next key targets at $3,300 and potentially $3,320.
Momentum indicators:
Stochastic Oscillator: 52 (neutral-positive zone)
Relative Strength Index (RSI): 54 (suggesting modest bullish momentum)
A sustained move above these resistance levels would likely encourage fresh buying interest, while failure to hold above $3,280 could invite renewed selling pressure.
Silver prices retreated as market sentiment followed the broader sell-off in gold. The strength of the U.S. Dollar and rising U.S. Treasury yields added to the downward pressure, dampening demand for the metal.
Currently, silver is testing a key support zone between $32.35 and $32.15. A decisive break below this range could open the door for further downside, with the next support level seen between $31.70 and $31.50.
Momentum indicators suggest a neutral stance:
Stochastic Oscillator: 56 – indicating limited short-term momentum.
Relative Strength Index (RSI): 50 – reflecting a balanced market, neither overbought nor oversold.
Should silver hold above the current support, a short-term rebound may be possible. However, continued strength in the USD and yields could maintain bearish pressure in the near term.
In the dynamic and ever-changing bullion markets, staying informed through both technical and fundamental analysis is essential for making sound investment decisions. Our report aims to offer a balanced perspective, providing investors with the insights needed to navigate the complexities of gold and silver trading effectively.