ISA Bullion Gold Report – 11 July 2024

Market Insights

Today’s report offers a detailed analysis of the gold and silver markets, highlighting the fundamental and technical factors influencing current trends. Our goal is to provide investors with the insights needed to navigate these markets effectively.

Fundamental Analysis

Gold prices are extending their upbeat momentum into a third consecutive day on Thursday, eagerly looking forward to the US Consumer Price Index data release later in the day, which could seal in a US Federal Reserve interest rate cut in September.

Gold:

• Gold has resumed its ongoing uptrend but remains shy of hitting the weekly highs set on Monday at $2,391. Momentum has shifted in favor of buyers. The first resistance would be the July 5 high at $2,392, followed by the $2,400 figure. Further upside is seen, with the next resistance lying at the year-to-date high of $2,450, ahead of the $2,500 mark. Conversely, if it slumps below $2,351, the gold metal might decline to the $2,300 level. If this support fails, the next demand zone would be the May 3 low of $2,277, followed by the March 21 high of $2,222. The short-term Stochastics Oscillator is at 78, and the Relative Strength Index (RSI) is at 58.

Silver:

• Silver pulls back as the gold/silver ratio moved back above the 77 level. From a technical point of view, silver continues its attempts to settle above the resistance at $31.00 – $31.25. In case silver moves above the $31.50 level, it will head towards the resistance at $31.75 – $32.00. The short-term Stochastics Oscillator is at 79, and the Relative Strength Index (RSI) is at 58.