Daily Report – 13 March 2024

13 March 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2184
2150
2158
2182
-24.00
-1.10%
Silver
24.69
24.00
24.17
24.42
-0.25
-1.02%
Daily Gold and Silver Market Analysis

 

Today’s analysis provides an in-depth look at the gold and silver markets, offering insights into the fundamental and technical factors driving current trends. Our report aims to equip investors with the knowledge needed to navigate these markets effectively.

Fundamental Analysis

Gold pulled back as traders reacted to U.S. inflation reports, which exceeded analyst expectations. Fed may be forced to be more hawkish to fight inflation, which is bearish for gold and other precious metals that pay no interest.  The hotter-than-expected inflation report leads to an increase in yields on interest-bearing bonds. 10-year US Treasury yields rebounded strongly to 4.15%. The US Dollar Index (DXY), which closely tracks the Greenback’s value against six major currencies, climbs to 103.20. Monthly headline CPI rose by 0.4%, as expected, against a 0.3% increase in January. The monthly core CPI, which excludes volatile food and energy prices, grew at a steady pace of 0.4% while investors anticipated it to rise by 0.2%. Annual headline inflation was up by 3.2% against expectations and the prior reading of 3.1%. The core CPI accelerated at 3.8% from expectations of 3.7% but lower than the former reading of 3.9%.

Gold

Gold prices corrected on Tuesday amid extremely overbought conditions, as indicated by the 14-day Relative Strength Index. From a technical perspective, the overnight swing low, seems to protect the immediate downside. A convincing break below 2142 might prompt some technical selling and drag the Gold price to the next relevant support near the 2126 zone. The subsequent slide might expose the $2,100 round figure, which should act as a strong base and a key pivotal point for short-term traders. On the flip side, any further move up is likely to face some resistance around the 2178 region ahead of the $2,195 (the record peak touched last Friday). Some follow-through buying beyond the $2,200 mark will push the Gold price to the uncharted territory and set the stage for the resumption of the recent blowout rally witnessed over the recent past. The short term Stochastics Oscillator is at 84 and Relative Strength Index is at 73.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2100
2126
2142
2160
2178
2195
2225

Silver

Silver moved lower as gold/silver ratio settled back above the 89 level. From a big picture point of view, silver again needs to cross above the resistance at 24.40 and then 24.60. If silver pulls back below the $24.00 level, it will head towards the nearest support at 23.84 and then 23.60. The short term Stochastics Oscillator is at 83 and Relative Strength Index (RSI) is at 63.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
23.60
23.84
24.00
24.18
24.40
24.68
24.85

Indicator Definitions

 

  • Stochastics Oscillator: Indicates momentum by comparing a closing price to its price range over a certain period. It suggests overbought conditions above 80 and oversold conditions below 20.
  • Relative Strength Index (RSI): Measures price changes to evaluate overbought or oversold conditions. A reading above 70 indicates overbought, while below 30 suggests oversold.
Key US Economic Reports & Events
When
Actual
Expected
Previous
30-y Bond Auction
9:01 PM
-
NA
4.36/2.4

Conclusion

In the complex and ever-evolving landscape of bullion markets, staying informed with both technical and fundamental analysis is crucial for making well-informed investment decisions. Our report strives to provide a balanced view to assist investors in navigating the intricacies of gold and silver trading.

This report is provided for informational purposes only, based on data from reputable sources, but is not intended as investment advice. ISA BULLION makes no guarantees as to the report's accuracy or completeness and disclaims any liability for losses that may arise from reliance on this information. Users are advised to conduct their own research and consult with professional advisors before making investment decisions. ISA BULLION, along with any associated directors, partners, officers, employees, or agents, expressly disclaims any responsibility for any direct or indirect loss or damage arising from the use or reliance on the information provided herein.