Daily Gold and Silver Market Analysis- 20 January 2025

20 January 2025
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2717
2698
2701
2713
-12.00
-0.44%
Silver
30.85
30.11
30.33
30.78
-0.45
-1.46%

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 necessary to navigate these markets successfully.

 

Fundamental Analysis

According to the Wall Street Journal, Trump is set to issue executive orders on immigration, energy, and government hiring policies soon, while also declaring a national emergency on the US-Mexico border shortly after his inauguration on Monday. However, the report does not mention tariffs, which could also contribute to the current risk-on market sentiment. Additionally, heightened expectations that China will reduce the Reserve Requirement Ratio (RRR) before the Lunar New Year, following its decision to keep the Loan Prime Rate (LPR) unchanged, further bolster market optimism. As the world’s largest consumer of gold, any stimulus measures from China could positively impact the price of non-yielding gold.

Gold

The short-term technical outlook for gold remains bullish, supported by last week’s breakout from a symmetrical triangle pattern. The yellow metal continues to trade well above all major daily moving averages. The 14-day Relative Strength Index (RSI) has stabilized above the midpoint, currently around 60, indicating that gold may experience a brief pullback before resuming its upward trend.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2660
2677
2695
2713
2730
2755
2780

Silver

Silver prices declined, causing the gold/silver ratio to rise above 89.00. The upward movement of the gold/silver ratio poses a constraint on silver. If silver remains above the 50-day moving average at $30.42, it could advance toward the next resistance level of $31.00 to $31.75. Currently, the short-term Stochastic Oscillator is at 75, while the Relative Strength Index (RSI) stands at 52.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
29.79
30.00
30.23
30.42
30.66
31.00
31.35

Indicator Definitions

  • Stochastic Oscillator: This indicator measures momentum by comparing the closing price to its price range over a specified period. Values above 80 indicate overbought conditions, while values below 20 suggest oversold conditions.
  • Relative Strength Index (RSI): The RSI assesses price changes to determine overbought or oversold conditions. A reading above 70 indicates overbought status, while a reading below 30 signals that the asset is oversold.
Key US Economic Reports & Events
When
Actual
Expected
Previous
US Holiday in observance of Martin Luther King Jr. Day;

Conclusion

In the dynamic and complex world of bullion markets, it’s essential to remain informed through both technical and fundamental analysis to make sound investment decisions. This report aims to offer a balanced perspective to help investors successfully navigate the complexities of gold and silver trading.