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 equip investors with the insights necessary to navigate these markets effectively.
Gold traders are currently assessing the latest developments regarding US President Donald Trump’s recent tariff proposals. While there is emerging optimism from China due to additional supportive measures from local authorities, Trump’s plans to impose 25% tariffs on Mexico and Canada, as well as 10% tariffs on China, are expected to face significant opposition from many Republicans in Congress. The 47th US President intends to use revenue from these higher tariffs to fund government programs and support promised tax cuts. This uncertainty surrounding Trump’s tariffs may reduce haven demand for the US Dollar (USD), gold, and US government bonds, potentially benefiting US Treasury bond yields.
From a short-term perspective, gold maintains its bullish potential and is poised to approach the record high of $2,790. Earlier this month, gold charted a breakout from a symmetrical triangle pattern, comfortably holding above all major moving averages, which signals a bullish trend. The 14-day Relative Strength Index (RSI) is positioned below the overbought region, indicating room for further upside. Currently, the Stochastic Oscillator is at 86, while the RSI stands at 70, reinforcing the outlook for additional gains.
Silver has been on an upward trajectory, with the gold/silver ratio rising above the key psychological level of 90.00. If silver closes the week above $31.00, it could advance toward the nearest resistance levels at $31.21 to $31.58. In the short term, the Stochastic Oscillator is at 80, indicating bullish momentum, while the Relative Strength Index (RSI) stands at 55, suggesting that silver still has room for further gains.
In the dynamic and complex landscape of bullion markets, it is essential to stay informed through both technical and fundamental analysis to make well-informed investment decisions. Our report aims to provide a balanced perspective to help investors navigate the intricacies of gold and silver trading effectively.