Daily Gold and Silver Market Analysis- 21 January 2025

21 January 2025
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2714
2689
2710
2701
+9.00
+0.33%
Silver
30.65
29.97
30.56
30.33
+0.23
+0.76%

Today’s analysis presents a comprehensive overview of the gold and silver markets, highlighting the fundamental and technical factors influencing current trends. Our report is intended to empower investors with the knowledge necessary to navigate these markets successfully.

Fundamental Analysis

Gold prices continue to rebound, retesting monthly highs of $2,725 early Tuesday. Gold buyers are re-entering the market in response to US President Donald Trump’s tariff threats, which are fueling risk-off sentiment across financial markets. Trump has indicated that he is ready to impose tariffs on China if Beijing does not approve the TikTok deal. This has driven investors to seek safety in gold, supporting prices near the monthly highs of $2,725. However, further gains for gold buyers may be limited as the US Dollar (USD) strengthens on safe-haven demand, putting a cap on the dollar-denominated precious metal. Additionally, while expectations of two interest rate cuts from the US Federal Reserve (Fed) this year, following mild December inflation data, provide support for gold, this outlook could shift if inflation concerns dampen investor sentiment.

Gold

The short-term technical outlook for gold remains positive. The recent breakout from a symmetrical triangle pattern is still intact, and the yellow metal is trading well above all major daily moving averages, reinforcing the bullish sentiment. The 14-day Relative Strength Index (RSI) is trending upward above the midline, further supporting the bullish case. Currently, the Stochastic Oscillator is at 89, and the RSI stands at 63.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2677
2695
2713
2728
2755
2780
2800

Silver

Silver prices have declined, causing the gold/silver ratio to rise above the 89.00 level. This upward movement in the ratio presents a challenge for silver. If silver maintains its position above the 50-day moving average at $30.42, it may target the next resistance level between $31.00 and $31.75. Currently, the short-term Stochastic Oscillator is at 78, while the Relative Strength Index (RSI) is at 55.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
30.00
30.23
30.42
30.66
31.00
31.35
31.58

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
No Important Data Today

Conclusion

In the intricate and constantly changing landscape of bullion markets, remaining informed through both technical and fundamental analysis is essential for making informed investment decisions. This report aims to provide a balanced perspective to help investors navigate the complexities of gold and silver trading effectively.

Disclaimer This report is intended for informational purposes only and is based on data from reputable sources. It does not constitute investment advice. ISA BULLION makes no guarantees regarding the accuracy or completeness of the report and disclaims any liability for losses that may result from reliance on this information. Users are encouraged to conduct their own research and consult with professional advisors before making investment decisions. ISA BULLION, along with its directors, partners, officers, employees, and agents, expressly disclaims any responsibility for any direct or indirect losses or damages arising from the use or reliance on the information presented herein.