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 consolidates above $2,150 level as traders await Fed policy update. Hawkish Fed expectations underpin the USD and act as a headwind for the metal. Traders seem reluctant to place aggressive bets ahead of the crucial FOMC decision. Markets are currently pricing in just about 60% of a June Fed rate cut. While the December Fed’s Dot Plot chart projects three rate cuts, it remains to be seen what the central bank’s outlook on interest rate cuts offers. Also, of note, will be Fed Chair Jerome Powell’s comments at the post-policy meeting press conference for fresh impact on the value of the US Dollar and the non-interest-bearing Gold price.
Gold
The short-term technical outlook for Gold price remains more or less the same, with a Bull Flag confirmation awaited on a daily candlestick closing above the falling trendline resistance at $2,165. Acceptance above the latter will trigger a fresh upswing toward the record high $2,195 will be retested. The next relevant bullish targets are seen at the $2,200 threshold and the $2,250 psychological level. The 14-day Relative Strength Index (RSI) is sitting just beneath the overbought region, suggesting that a fresh Gold price upswing could be in the offing. If Gold sellers fight back control, immediate support is seen at Monday’s low of $2,146, below which the falling trendline support at $2,132 will come to buyers’ rescue. A sustained move below that level will put the March 6 low of $2,125 to the test. Further down, the key round level of $2,110 will challenge bullish commitments. The short term Stochastics Oscillator is at 77 and Relative Strength Index is at 67.
Silver
Silver pulled back below the $25.00 level and gold/silver ratio climbed above 86.50. The weekly close above the $25.00 level has given strong signal and may lead it to quickly regain $25.20. 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. If broken, it will head towards the nearest support, which is located in the $24.40 – $24.60 range. The short term Stochastics Oscillator is at 83 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.