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 provide investors with the insights necessary to navigate these markets with confidence.
Gold prices are struggling to extend Tuesday’s rebound, with price movements showing limited progress in the Asian session on Wednesday. Gold buyers are attempting to capitalize on renewed safe-haven flows, driven by US President Donald Trump’s tariff uncertainties and weak US economic outlook. On Wednesday morning, gold prices are sustaining Tuesday’s late recovery as the tariff deadline on Canada and Mexico looms. Concerns over a potential trade war continue to support demand for gold, which remains a traditional store of value, limiting any significant downside. Additionally, markets are monitoring Trump’s order for a new investigation into potential tariffs on copper imports, aimed at boosting US production of the metal.
On the daily chart, gold prices are retreating from record highs of $2,956, having broken the key $2,950 psychological barrier on a closing basis. The 14-day Relative Strength Index (RSI) has eased from overbought levels and is now within the bullish zone, suggesting that gold may attract fresh buying interest on dips. Immediate support is located at the $2,900 round level, followed by the February 14 low of $2,877. However, if the uptrend resumes, gold buyers may target a retest of the all-time high at $2,956. Further upside barriers lie at the $2,975 resistance and the $3,000 level. The Stochastic Oscillator is currently at 66, while the RSI stands at 62, indicating a neutral to mildly bullish outlook for gold.
Silver is maintaining support within the range of $31.45 – $31.75 as the gold/silver ratio rises above the 92 level. Should silver settle below $31.50, it may target the 50-day moving average (MA) at $30.84. A drop below the 50 MA could pave the way for a test of the support zone between $29.75 and $30.00. The short-term Stochastic Oscillator is currently at 32, and the Relative Strength Index (RSI) stands at 48, indicating a neutral to slightly bearish outlook for silver.
In the dynamic and constantly changing bullion markets, staying informed through both technical and fundamental analysis is essential for making well-informed investment decisions. Our report aims to provide a balanced perspective, helping investors navigate the complexities of gold and silver trading with greater insight and confidence.