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 declined amid some follow-through US Dollar buying interest. The Fed’s projected three rate cuts in 2024 will likely cap the USD and limit losses for the metal. Traders look forward to Fed Chair Jerome Powell’s speech for short-term opportunities. Earlier, it registered a fresh all-time high of $2,223 reached in early Asian trading on Thursday as markets react to the dovish US Federal Reserve no-interest rate change decision on Wednesday.
Gold
Gold can witness some follow-through selling below the overnight swing low, around the $2,165 area, or the 100-hour SMA, might expose the $2,150 support. A convincing break below the latter could drag the Gold price further towards the next relevant support near the $2,121 zone en route to the $2,100 round figure. On the upside, the $2,195 last week high now seems to act as an immediate hurdle, above which bulls might aim to challenge the record high, around the $2,223 zone touched on Thursday. Meanwhile, the Relative Strength Index (RSI) on the daily chart – though has eased from higher levels – is still flashing overbought conditions and warrants caution. The short term Stochastics Oscillator is at 75 and Relative Strength Index is at 67.
Silver
Silver declined on Thursday after hitting its highest level since December 4 earlier in the session. a lower close today will create a bearish formation of closing price reversal top, which could lead to the start of a near-term correction. The immediate outlook for silver is bearish, considering the Fed’s current monetary policy and the contrasting trends in the gold market. The immediate hurdle seems psychological mark of $ 25.00. The short term Stochastics Oscillator is at 69 and Relative Strength Index (RSI) is at 55.
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.