ISA Bullion Gold Report – 18 July 2024

Market Insights

Today’s analysis provides a detailed examination of the gold and silver markets, highlighting the fundamental and technical factors driving current trends. Our aim is to equip investors with the insights needed to navigate these markets effectively.

Fundamental Analysis

Gold prices have found fresh demand above $2,450 in early trading on Thursday, looking to regain upside momentum following a brief correction from a new record high of $2,484 set on Wednesday.

Gold:

• Gold’s uptrend is set to continue, though buyers are taking a respite after hitting all-time highs. Momentum remains in their favor, as indicated by the Relative Strength Index (RSI), which dipped slightly but is still bullish. If XAU/USD resumes its uptrend, the first resistance will be the all-time high at $2,484. A breach of this level will expose the $2,500 psychological level, followed by the $2,525 figure. On the downside, if XAU/USD drops below $2,450, the first support would be the $2,400 figure. The short-term Stochastics Oscillator is at 91 and the Relative Strength Index (RSI) is at 67.

Silver:

• Silver is under strong pressure as the gold/silver ratio rallied above the 81.50 level. If silver settles below the 50 MA at $30.13, it will move towards the nearest support, located in the $28.75 – $29.00 range. The short-term Stochastics Oscillator is at 60 and the Relative Strength Index (RSI) is at 50.