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 prices hang near one-week low, looks to Fed decision on Wednesday for fresh impetus. Gold prices struggled to capitalize on the previous day’s upmove as hawkish Fed expectations, elevated US bond yields and a bullish USD cap the upside. The US Dollar seesawed between gains and losses, but overall financial activity was limited amid upcoming central banks’ announcements. The Reserve Bank of Australia (RBA) and the Bank of Japan (BoJ) will be the first to unveil their decisions early on Tuesday, focusing on the BoJ, as the central bank is expected to end its ultra-loose monetary policy. Meanwhile, government bond yields tick higher, limiting the US Dollar’s slide. The 10-year Treasury note currently offers 4.33%, up 3 basis points (bps) in the day and at fresh March highs.
Gold
Price as per daily chart shows buyers supported around $2146 levels which is 25% Fibonacci retracement of the bullish run, which measured between recent low and recent high $1,984 and $2,195 respectively. The technical indicators have turned flat around overbought levels after correcting extreme readings. Moving Averages retraced till 65, far below the current high of 85. Any decline below the current prices could accelerate the fall to the next relevant support near the $2,146. The corrective slide could extend further towards the $2,100 round figure, which should act as a strong base for the XAU/USD. On the flip side, the $2,176 now seems to have emerged as an immediate strong barrier, which if cleared should allow the Gold price to challenge the record peak, around the $2,195 area touched last week. Some follow-through buying beyond the $2,200 mark will set the stage for the resumption of the uptrend witnessed since the beginning of this month. The short term Stochastics Oscillator is at 78 and Relative Strength Index is at 66.
Silver
Silver ended last week on a high note, closing at $25.16, marking an increase of $0.87 or 3.60%. This upward movement significantly contrasted with gold’s modest decline. The trend propels silver towards testing recent highs of $25.46 and $25.85. To maintain uptrend silver needs to stay above the $24.79 level in the upcoming trading sessions. The weekly close above the $25.00 level has given strong signal and may lead it to quickly regain $25.20. The short term Stochastics Oscillator is at 87 and Relative Strength Index (RSI) is at 65.
Indicator Definitions
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.