Today 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 retreated last week as Dollar Index hover around five-week high. The Fed’s economic projections, Dot Plot chart, still predicted three rate cuts this year as seen in January. Markets had begun pricing two Fed rate cuts this year after two consecutive months of higher inflation readings. The Fed kept the key rates unchanged between the 5.25% to 5.50% target range, following the March policy meeting. Markets are now pricing in a 75% probability that the Fed will begin easing in June, up from 59% pre-Fed decision, according to the CME Group’s Fed Watch Tool.
Gold
Gold, with retains renewed uptrend as price remains on track to test the measured target at $2,222. At first, Gold price needs to recapture the $2,200 threshold, following the record high. The 14-day Relative Strength Index (RSI), is seeing a fresh uptick while within the positive territory, indicating more upside on the cards. On the flip side, immediate support is seen around the previous day’s low of $2,152, below which the resistance at $2,133 will be challenged. A sustained move below it will put the Bull Flag support of $2,121 at risk. The short term Stochastics Oscillator is at 53 and Relative Strength Index is at 64.
Silver
Silver prices experienced a notable decline last week, ending a three-week rally, contrasting with gold’s robust performance and record highs. This divergence highlights silver’s unique market position, distinct from gold, cryptocurrencies, and equities. Last week, XAG/USD settled at $24.67, down $0.51 or -2.02%. This is down from a weekly high of $25.78. The immediate outlook for silver is bearish, considering the Fed’s current monetary policy and the contrasting trends in the gold market. The next hurdle seems psychological mark of $ 25.00. The short term Stochastics Oscillator is at 53 and Relative Strength Index (RSI) is at 56.
Indicator Definitions
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.
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