Today’s analysis provides a comprehensive examination of the gold and silver markets, highlighting the fundamental and technical factors influencing current trends. Our report aims to equip investors with the insights needed to navigate these markets effectively.
Gold price is languishing near four-week lows of $2,286 in Asian trades on Monday, looking to attempt a tepid rebound. The US Dollar holds higher ground alongside the US Treasury bond yields, extending Friday’s sharp gains after the robust US Nonfarm Payrolls report.
A breakdown through the $2,300 mark could be seen as a fresh trigger for bearish traders. Follow-through selling below the $2,281 horizontal support will reaffirm the bearish outlook and expose the next relevant support near the $2,270-$2,248 region. On the upside, any attempted recovery might confront stiff resistance near the $2,308-$2,323-$2,350 region. This should allow the price to retest the $2,400 mark. The short-term Stochastics Oscillator is at 18, and the Relative Strength Index (RSI) is at 42.
Silver prices ended last week sharply lower, erasing earlier gains. The downturn was primarily driven by China halting bullion purchases in May and a stronger-than-expected US labor market. These developments have raised concerns about silver’s value in the absence of China’s support. The weekly chart indicates silver’s near-term value at $28.00 and intermediate-term value at $25.00. The short-term Stochastics Oscillator is at 26, and the Relative Strength Index (RSI) is at 49.