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.
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.
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.
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.
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.