Today’s analysis offers a comprehensive overview of the gold and silver markets, highlighting the key fundamental and technical factors influencing current trends. Our report is designed to provide investors with the insights necessary to make informed decisions in these markets.
Gold prices continue their gradual consolidation on Monday, following a period of struggle near the record highs of $2,955 set last Thursday. Traders remain cautious due to ongoing tariff threats from US President Donald Trump and anticipation of upcoming US inflation data later this week. A diminishing risk appetite is reducing the appeal of safe-haven assets like gold and US government bonds, which has led to a rise in US Treasury bond yields across the curve. Weak PMI data for February has reignited concerns over the US economic outlook, compounded by uncertainty regarding trade policies and potential inflationary pressures. Going forward, attention will be on the US-Russia meeting, the possibility of new tariff threats from Trump, and the release of US economic data this week, all of which could provide fresh direction for gold prices.
Gold has found support at the 50-four-hour Moving Average at $2,918 on multiple occasions, and its consolidation continues for a second consecutive day, approaching the record high of $2,955 set last Thursday. This could signal a resumption of the rally. The Relative Strength Index (RSI) is trending upwards above the midline, indicating potential for further upside. A successful retest of the record high at $2,955 could open the door for prices to rise toward $2,975-$3,000. However, if buyers lose momentum at higher levels, the 50-four-hour SMA at $2,918 could come under pressure, with downside risk toward the $2,900 round number if this support fails. A further drop could take prices to the February 14 low of $2,877, a crucial level to watch. The Stochastic Oscillator stands at 87, and the RSI is at 72, both indicating the market is in an overbought territory.
Silver experienced a pullback as the gold/silver ratio climbed toward the 90 level. The Relative Strength Index (RSI) is currently in neutral territory, with plenty of room for momentum to build in the near term. If silver resumes its uptrend, it is likely to move toward $33.00, followed by the next resistance zone between $33.41 and $33.75. The short-term Stochastic Oscillator is at 68, and the RSI is at 60, both indicating a balanced market with potential for further upside.
In the dynamic and constantly changing bullion markets, staying informed through both technical and fundamental analysis is essential for making sound investment decisions. This report aims to offer a balanced perspective to help investors navigate the complexities of gold and silver trading effectively.