Daily Gold and Silver Market Analysis – 20 December 2024

20 December 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2626
2583
2593
2587
+6.00
+0.23%
Silver
29.74
28.74
29.02
29.36
-0.34
-1.16%

Today’s analysis offers a comprehensive examination of the gold and silver markets, providing insights into the fundamental and technical factors influencing current trends. Our report aims to equip investors with the knowledge necessary to navigate these markets effectively.

Fundamental Analysis

Gold prices have experienced a decline following the Federal Reserve’s decision to cut interest rates by 25 basis points, signaling only two additional cuts in 2025. The central bank emphasized the uncertain economic outlook and acknowledged growing risks to its dual mandate. This development has led to a resurgence in the U.S. dollar and Treasury yields, applying downward pressure on gold prices. However, the looming risk of a U.S. government shutdown and geopolitical tensions in the Middle East and South Korea may provide support for gold as a safe-haven asset.

Gold

Gold is currently trading near the $2,600 mark, having retraced from the 100-day Moving Average at $2,652. The 14-day Relative Strength Index (RSI) is below the mid-50 level, indicating potential for a rebound. Should buyers regain control, the price could rise to $2,670, with the $2,700 level as the next target. A further advance may challenge the recent multi-week high of $2,726. Conversely, a significant support level exists around $2,600, which, if breached, could signal further downside. The Stochastics Oscillator is at 21, and the RSI stands at 44, suggesting the market is approaching oversold conditions.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2542
2564
2581
2603
2624
2648
2670

Silver

Silver has mirrored gold’s movements, declining from the 10-day Moving Average. The gold/silver ratio has risen above the 88.00 level, indicating relative weakness in silver compared to gold. If silver stabilizes below the $30.00 level, it may target the support zone between $29.24 and $29.00. A drop below $29.00 could open the path to the next support at $28.44–$28.16. On the upside, reclaiming the $30.00 level could lead to resistance at $30.28, with further gains aiming for $30.33–$30.64. The RSI is at 36, and the Stochastics Oscillator is at 18, indicating that silver is nearing oversold territory, which may precede a potential rebound.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
28.16
28.44
28.70
29.08
29.42
29.42
30.00

Indicator Definitions

  • Stochastics Oscillator: Measures momentum by comparing a closing price to its price range over a specific period. Readings above 80 suggest overbought conditions, while readings below 20 indicate oversold conditions.
  • Relative Strength Index (RSI): Evaluates price changes to identify overbought or oversold conditions. A reading above 70 denotes overbought conditions, whereas below 30 suggests oversold conditions.
Key US Economic Reports & Events
When
Actual
Expected
Previous
Core PCE Price Index m/m
5:30 pm
0.1%
0.2%
0.3%
Revised UoM Consumer Sentiment
7:00 PM
74.0
74.1
74.0

Conclusion

In the complex and ever-evolving landscape of bullion markets, staying informed through both technical and fundamental analysis is crucial for making well-informed investment decisions. Our report strives to provide a balanced perspective to assist investors in navigating the intricacies of gold and silver trading.

Disclaimer: This report is provided for informational purposes only, based on data from reputable sources, and is not intended as investment advice. ISA Bullion makes no guarantees regarding the report's accuracy or completeness and disclaims any liability for losses that may arise from reliance on this information. Users are advised to conduct their own research and consult professional advisors before making investment decisions. ISA Bullion, along with any associated directors, partners, officers, employees, or agents, expressly disclaims responsibility for any direct or indirect loss or damage resulting from the use or reliance on the information contained herein.