Daily Gold and Silver Market Analysis- 31 January 2025

31 January 2025
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2799
2757
2796
2757
+39.00
+1.41%
Silver
31.75
30.78
31.64
30.80
+0.84
+2.73%

Today’s analysis offers a thorough examination of the gold and silver markets, providing insights into the fundamental and technical factors influencing current trends. Our report is designed to equip investors with the knowledge necessary to navigate these markets successfully.

Fundamental Analysis

Gold prices have surged to record highs, approaching $2,800, driven by fresh fund inflows amid trade war concerns and geopolitical risks. Rebounding US bond yields support the USD, which limits the upside for the precious metal. President Trump’s recent tariff warnings keep investors on alert, increasing demand for traditional safe havens such as the USD, gold, and US government bonds. In a recent post on X, the 47th US President reiterated his threat to impose 100% tariffs on BRICS nations if they attempt to replace the US dollar with a new currency for international trade. Additionally, the US Gross Domestic Product (GDP) grew at an annualized rate of 2.3% in the fourth quarter, which was below the expected 2.6% and follows a stronger 3.1% growth in the third quarter. Traders are now anticipating the release of the US PCE Price Index for further market direction.

Gold Outlook

Gold prices remain strong near fresh record highs, having closed Thursday well above the symmetrical triangle target of $2,785 and the previous all-time high of $2,790. The 14-day Relative Strength Index (RSI) indicates that there is still room for upside before entering overbought territory. Supporting this bullish outlook, the Bull Cross between the 50-day and 100-day moving averages, confirmed last week, remains intact. For gold to target the next resistance level at $2,850, it needs to sustain a move above $2,800. Currently, the Stochastic Oscillator is at 90, and the Relative Strength Index is at 67.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2730
2750
2770
2796
2815
2830
2850

Silver Outlook

Silver is testing resistance at $31.78 as the gold/silver ratio declines toward the 88.50 level. A breakout above $32.00 would pave the way for the next resistance levels at $32.38 and $33.00. Currently, the short-term Stochastic Oscillator is at 89, while the Relative Strength Index (RSI) is at 60.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
30.85
31.00
31.22
31.50
31.78
32.00
32.38

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
Core PCE Price Index m/m
5:30pm
0.2%
0.2%
0.1%
Employment Cost Index q/q
5:30pm
0.9%
0.9%
0.8%
Chicago PMI
6:45pm
39.5
40.3
36.9

Conclusion

In the intricate and dynamic landscape of bullion markets, being informed through both technical and fundamental analysis is essential for making sound investment decisions. Our report aims to provide a balanced perspective to help 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.