Daily Gold and Silver Market Analysis- 27 January 2025

27 January 2025
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2786
2752
2771
2754
+17.00
+0.62%
Silver
31.05
30.38
30.60
30.44
+0.16
+0.53%

Today’s analysis offers a comprehensive examination 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 successfully.

 

Fundamental Analysis

Gold prices begin the new week on a softer note due to a modest recovery in the USD. Expectations for a Fed rate cut and declining US bond yields may limit any further appreciation of the dollar. Renewed concerns over a potential trade war could help contain losses for the safe-haven XAU/USD pair. Gold traders are liquidating long positions to secure profits after the metal fell just short of record highs. Additionally, repositioning ahead of the upcoming Fed event is also weighing on gold prices. Increased demand for the USD as a safe-haven asset, spurred by fears of a global trade conflict, has capped the gains in USD-denominated gold prices. On Sunday, President Trump imposed a 25% tariff on all Colombian imports, threatening to escalate it to 50% in a week due to Colombia’s refusal to allow two military planes carrying deported migrants to land, part of the new administration’s immigration policy. In response, Colombia’s President Gustavo Petro threatened to impose a 50% tariff of his own.

Gold

The daily chart indicates that the short-term technical outlook for gold remains positive, despite a recent pullback from near record highs. Gold prices reached the target set by a symmetrical triangle pattern on Friday, but failed to produce a daily candlestick close above it, leading buyers to adopt a more cautious stance. The 14-day Relative Strength Index (RSI) has turned down after entering the overbought zone, suggesting that gold may still present a good dip-buying opportunity. The Stochastic Oscillator is at 80, while the RSI sits at 64.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2695
2705
2725
2753
2772
2790
2815

Silver

Silver prices are on the rise, and the gold/silver ratio has surpassed the key psychological level of 91.00. If silver breaks above $30.68, it could head towards the nearest resistance zone between $30.85 and $31.00. Currently, the short-term Stochastic Oscillator is at 60, while the Relative Strength Index (RSI) stands at 48.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
30.48
29.71
30.00
30.23
30.42
30.68
30.85

Indicator Definitions

  • Stochastics Oscillator: This indicator measures momentum by comparing a closing price to its price range over a specific period. It indicates overbought conditions when above 80 and oversold conditions when below 20.
  • Relative Strength Index (RSI): The RSI evaluates price changes to identify overbought or oversold conditions. A reading above 70 signifies overbought conditions, while a reading below 30 indicates oversold conditions.
Key US Economic Reports & Events
When
Actual
Expected
Previous
New Home Sales
7:00pm
698K
669K
664K

Conclusion

In the dynamic and intricate world of bullion markets, it’s essential to stay informed through both technical and fundamental analysis to make sound investment decisions. Our report aims to provide a balanced perspective, helping investors effectively navigate the complexities of gold and silver trading.

Disclaimer This report is intended for informational purposes only and is based on data from reputable sources. It does not constitute investment advice. ISA BULLION makes no guarantees regarding the accuracy or completeness of the report and disclaims any liability for losses that may result from reliance on this information. Users are encouraged to conduct their own research and consult with professional advisors before making investment decisions. ISA BULLION, along with its directors, partners, officers, employees, and agents, expressly disclaims any responsibility for any direct or indirect losses or damages arising from the use or reliance on the information presented herein.