ISA Bullion Gold Report – 12 July 2024

Market Overview

Today’s report offers a comprehensive examination of the gold and silver markets, highlighting the fundamental and technical factors influencing current trends. Our objective is to provide investors with the insights necessary to navigate these markets successfully.

Fundamental Analysis

Gold price is reversing to test the $2,400 threshold early Friday, staging a minor pullback from a new two-month top set at $2,425 on Thursday. Traders now look forward to the US Producer Price Index data and the looming risks of more Japanese forex market intervention for the next push higher in Gold price.

Gold:

• The gold price has entered an aggressive uptrend, decisively breaking the Head-and-Shoulders neckline. The overnight sustained breakout through the $2,400 mark is seen as a fresh trigger for bullish traders. The first resistance is the year-to-date high of $2,450, ahead of the $2,500 mark. Conversely, if gold slides below the $2,400 figure, the next demand zone will be the July 5 high at $2,392. If cleared, XAU/USD could continue to $2,350. The short-term Stochastics Oscillator is at 83, and the Relative Strength Index (RSI) is at 59.

Silver:

• Silver gains ground, supported by falling Treasury yields and the U.S. dollar’s pullback. A successful test of the resistance at $30.90 – $31.20 will push silver towards the next resistance level at $31.25 – $31.50. The short-term Stochastics Oscillator is at 73, and the Relative Strength Index (RSI) is at 56.