Today’s analysis offers a comprehensive overview of the gold and silver markets, highlighting the fundamental and technical factors shaping current trends. This report is designed to provide investors with the insights needed to navigate these markets effectively.
Gold prices are under pressure for the third consecutive day on Monday, as a positive risk sentiment and a modest uptick in the U.S. dollar weigh on the precious metal. However, expectations of Federal Reserve rate cuts and ongoing geopolitical risks could provide support for XAU/USD.
According to a recent Wall Street Journal report, the White House is expected to refine its upcoming tariffs set to take effect on April 2, likely omitting some industry-specific tariffs while imposing reciprocal tariffs on key trading partners. Meanwhile, China’s efforts to boost domestic consumption are bolstering market sentiment. Additionally, hopes for progress in the Russia-Ukraine conflict have risen following Sunday’s meeting between U.S. and Ukrainian officials in Saudi Arabia, further influencing risk flows.
From a technical standpoint, gold maintains its “buy-the-dip” status following a confirmed breakout from an ascending triangle earlier this month. However, with the 14-day Relative Strength Index (RSI) easing, a further retracement appears likely.
As long as the RSI remains above the midline, any pullbacks in gold prices are expected to attract renewed buying interest. If the current decline extends, gold may test Friday’s low of $3,000, with further support at the previous week’s low of $2,980. A more significant drop could bring the crucial triangle support at $2,950 into focus.
On the upside, if buyers regain control, gold could challenge its record high of $3,058. A breakout above this level would pave the way toward the ascending triangle’s measured target of $3,080. Technical indicators show the Stochastics Oscillator at 78 and the RSI at 64, suggesting bullish momentum remains intact despite short-term consolidation.
Silver is retreating as traders take profits following a strong rally. However, if the metal reclaims the $34.00 level, it could resume its upward momentum, with the next resistance zone at $34.25–$34.50.
Technical indicators suggest a neutral-to-bullish outlook, with the short-term Stochastics Oscillator at 64 and the Relative Strength Index (RSI) at 55, indicating room for potential upside while avoiding overbought conditions.
In the dynamic and ever-evolving bullion markets, staying informed through both technical and fundamental analysis is essential for making well-informed investment decisions. This report aims to provide a balanced perspective, helping investors navigate the complexities of gold and silver trading with greater confidence.