1 July 2024- Daily Gold and Silver Market Analysis

Market Insights

Today’s report provides an in-depth analysis of the gold and silver markets, highlighting the fundamental and technical factors influencing current trends. Our objective is to equip investors with the knowledge needed to navigate these markets effectively.

Fundamental Analysis

Gold price is treading water near $2,325 in Asian trading hours on Monday, holding Friday’s range play. Gold price fails to capitalize on the US Personal Consumption Expenditure inflation data-led US Dollar weakness, as buyers turn to the sidelines heading into a big week.

Gold:

• Immediate resistance is near the $2,336 region, acting as a key pivotal point. Sustained strength beyond this level could lift the gold price back towards the $2,350-$2,376 supply zone. Follow-through buying could negate any near-term negative bias and allow bulls to reclaim the $2,400 round-figure mark. On the downside, the $2,300 round-figure mark is likely to protect immediate losses ahead of the $2,286 horizontal support. A convincing break below this level could trigger further bearish moves toward the 100-day MA near the $2,253 area. The short-term Stochastics Oscillator is at 43, and the Relative Strength Index (RSI) is at 47.

Silver:

• Silver prices experienced a 1.37% decline last week but managed to secure a third consecutive quarterly gain. The market’s performance was influenced by conflicting factors: U.S. inflation data aligning with expectations bolstered prospects for potential Federal Reserve rate cuts, while higher Treasury yields and a firmer dollar exerted downward pressure. Investors are betting on two interest rate cuts this year, despite the Federal Reserve projecting only one, reducing the opportunity cost of holding non-yielding assets like silver. The short-term Stochastics Oscillator is at 22, and the Relative Strength Index (RSI) is at 46.