Today’s analysis offers a comprehensive examination of the gold and silver markets, delving into the fundamental and technical factors that are influencing current trends. Our report is designed to provide investors with the insights necessary to navigate these markets with confidence.
Gold prices have pulled back from their record highs as traders take profits off the table. Concerns over Trump’s tariff plans are likely to limit any significant losses for the precious metal, which remains a safe-haven asset. Additionally, expectations that the Federal Reserve may further cut rates could provide a boost to XAU/USD.
The dovish sentiment surrounding Fed rate expectations continues to weigh on US Treasury bond yields, helping support the upward momentum in gold prices. Furthermore, a lack of progress in the second round of US-Russia peace talks aimed at resolving the Ukraine conflict continues to support gold’s appeal. Looking ahead, gold prices will remain influenced by the ongoing discussions around Trump’s tariff plans, while the release of mid-tier US Consumer Confidence data is expected to have less of an impact. There is also a potential for widespread profit-taking across the markets in anticipation of Nvidia’s earnings results.
On the daily chart, gold prices are retreating from the record high of $2,956, having closed above the key $2,950 psychological level on Monday. The 14-day Relative Strength Index (RSI) has eased off from overbought conditions, now sitting at 70, indicating that gold may attract fresh buying interest on dips. Immediate support is found at the previous day’s low of $2,921, and a break below this level could lead to a test of the $2,900 round number. If prices continue to decline, the February 14 low of $2,877 will serve as a critical support for gold bulls.
However, if the uptrend resumes, gold buyers could target a retest of the all-time high of $2,956. Additional resistance lies at $2,975, with the $3,000 threshold as the next major target. The Stochastic Oscillator is currently at 81, while the RSI remains at 70, further suggesting potential bullish momentum on a price pullback.
Silver (XAG/USD) is building on the previous day’s modest bounce from around the $32.00 mark, which had represented a near one-week low. The XAG/USD gained positive momentum during the Asian session on Tuesday and is now eyeing the monthly swing high near $33.40, reached on February 14. A break above this level could propel the price towards the $34.00 mark, with further upside potential towards the $34.45 intermediate resistance, bringing the $35.00 area—where silver touched a multi-year peak in October—into focus.
On the downside, the $32.10-$32.00 range is now acting as immediate support, with the $31.75 region following closely. Any further decline towards these levels could be viewed as a buying opportunity, potentially limiting downside pressure near the $31.25 zone. A more significant pullback could drag XAG/USD below the $31.00 round figure and test the next support at $30.25. Below that, the $30.00 psychological level and the $29.55-$29.50 horizontal zone would provide additional support.
The short-term Stochastic Oscillator is at 56, and the Relative Strength Index (RSI) is also at 56, signaling a neutral to mildly bullish outlook for silver.
In the dynamic and constantly shifting world of bullion markets, staying updated with both technical and fundamental analysis is essential for making informed investment choices. Our report aims to offer a well-rounded perspective, helping investors navigate the complexities of gold and silver trading with greater confidence and insight.