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.