Fundamental Analysis
Gold prices registered a fresh all-time high of $2,223 reached in early Asian trading on Thursday, although defends the $2,200 threshold amid sustained weakness in the US Dollar and the US Treasury bond yields. Markets digest the dovish US Federal Reserve no-interest rate change decision on Wednesday.
Gold
The overnight strong positive move confirmed a breakout through a bullish flag chart pattern and validated the positive outlook for the Gold price. That said, the Relative Strength Index (RSI) has moved back above the 70 mark, making it prudent to wait for some near-term consolidation or a modest pullback before traders start positioning for any further appreciating move. Nevertheless, the broader setup supports prospects for an extension of the recent well-established strong uptrend witnessed over the past month or so. The short term Stochastics Oscillator is at 85 and Relative Strength Index is at 75.
Silver
Silver moved up increasing by 0.21% to a price of $25.65, as market participants weighed various economic indicators and market sentiments. The pivot point at $25.46 serves as a pivotal juncture for future price movements, with resistance levels observed at $25.74, $25.88, and $26.00. These levels could cap further gains should the metal attempt to ascend. Support levels at $25.46, $25.20, and $24.96 provide a safety net against potential declines. The 50-Day and 200-Day Exponential Moving Averages, suggest a bullish outlook for Silver as long as it maintains above the $25.46 mark. A move below this pivot point, however, could signal a shift to a bearish trend, necessitating a strategic reassessment for traders and investors. The short term Stochastics Oscillator is at 92 and Relative Strength Index (RSI) is at 70.
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.