Today’s report delivers a comprehensive overview of the gold and silver markets, highlighting the key fundamental and technical drivers shaping current price movements. We aim to provide investors with clear, actionable insights to help them navigate these markets confidently and effectively.
Gold came under renewed selling pressure during Monday’s Asian session, sliding toward the $4,050 level. The US Dollar remains firmly on a bullish trajectory—hovering near its strongest point since late May—despite mixed remarks from Federal Reserve officials. This continued dollar strength is weighing on gold demand.
On Thursday, the US Bureau of Labour Statistics released the closely-watched Nonfarm Payrolls data, revealing that the economy added 119,000 jobs in September. This result exceeded expectations of 50,000 and followed a revised 4,000 decline recorded in August (previously reported as +22,000).
Wage growth, measured by Average Hourly Earnings, held steady at 3.8% year-over-year, slightly above the forecast of 3.7%. This offset the rise in the unemployment rate from 4.3% to 4.4%, supporting a less dovish outlook for the Federal Reserve.
This data aligns with Wednesday’s FOMC minutes, which showed policymakers still divided on the future policy path. According to the CME FedWatch Tool, the probability of a Fed rate cut in December has now fallen to around 35%.
Gold continues to trade above a nearly month-long ascending trendline, with key support clustered around the $4,021 level—an area reinforced by the 200-period Moving Average. This zone serves as a critical pivot point.
A decisive break below this support could expose gold to additional downside, potentially pushing prices beneath the $4,000 psychological barrier and toward the next support at $3,971.
Conversely, for buyers to regain control, the price must establish sustained momentum above the $4,067 resistance level. A confirmed breakout could open the door for a move toward the $4,085–$4,111 region, with further upside targeting the $4,200 round figure.
Current indicators show the Stochastics Oscillator at 42 and the RSI at 51, suggesting a neutral-to-cautious bias.
Overall, the gold market is positioned at a decisive point, with clear support and resistance levels likely to guide the next significant move.
Silver has dropped to fresh lows but continues to hold near the key psychological level of $50.00. A stable move above this threshold could pave the way for a rise toward the next resistance zone at $50.50–$50.80. Meanwhile, the gold/silver ratio remains elevated above 81.00.
On the downside, a break below the $49.34–$49.00 support band would likely trigger a move toward the next support level at $48.42.
Current momentum indicators show the Stochastics Oscillator at 43 and the RSI at 52, reflecting a neutral short-term bias.
Stochastics Oscillator: A momentum indicator that compares the closing price to its price range over a set period. Readings above 80 indicate overbought conditions, while readings below 20 suggest oversold levels.
Relative Strength Index (RSI): Measures the speed and magnitude of recent price movements to identify overbought or oversold conditions. Values above 70 signal overbought territory, and below 30 indicate oversold territory.
In today’s fast-moving, increasingly complex bullion markets, combining technical and fundamental insights is essential for making sound investment decisions. This report aims to offer a clear and balanced perspective, helping investors confidently navigate the dynamics of gold and silver trading.