ISA Bullion Gold Report – 18 October 2024

18 October 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2696
2673
2694
2674
+20.00
+0.75%
Silver
32.00
31.29
31.77
31.72
+0.05
+0.16%

Introduction

As the global economy remains in flux, gold and silver continue to serve as key safe-haven assets for investors seeking stability and potential upside in volatile markets. Economic developments, geopolitical tensions, and central bank policies are all contributing to dynamic price movements. With both metals nearing critical levels, investors are closely watching technical indicators and fundamental drivers to identify opportunities and manage risks effectively. This report provides a comprehensive analysis of the current trends in gold and silver, equipping investors with the insights necessary to navigate these markets with confidence.


Fundamental Analysis

Gold:

Gold prices reached a new high above $2,700 early Friday, buoyed by optimism surrounding China’s fiscal stimulus and a weaker U.S. Dollar. With the gold market now facing key resistance levels, a break above $2,700 could see further bullish momentum, potentially testing the $2,750 psychological barrier. The Stochastic Oscillator is currently elevated at 90, signaling overbought conditions, while the RSI stands at 72, indicating strong upward momentum but suggesting a potential pullback if profit-taking emerges.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2666
2684
2700
2712
2725
2750
2775

Silver:

Silver has shown signs of pulling back, even as gold extends its rally, with the gold/silver ratio climbing above the 85.00 level. Silver will need to break and hold above the $32.00 resistance level to maintain bullish momentum. Technically, the Stochastic Oscillator is at 62, and the RSI is at 58, both signaling moderate strength but with room for further upside if resistance levels are breached.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
31.33
31.64
31.80
32.08
32.25
32.50
32.75

Definitions of Key Indicators

  • Stochastic Oscillator: Measures an asset’s momentum by comparing its closing price to its price range over a certain period. It indicates overbought conditions when above 80 and oversold conditions when below 20.
  • Relative Strength Index (RSI): Evaluates price changes to determine overbought (above 70) or oversold (below 30) conditions, signaling potential turning points in the market.
Key US Economic Reports & Events
When
Actual
Expected
Previous
Building Permits
4:30pm
1.43M
1.45M
1.48M
Housing Starts
4:30pm
1.35M
1.35M
1.36M
FOMC Member Waller Speaks
8:10pm
NA
NA
NA

Conclusion

Gold and silver are at pivotal moments, with gold testing the $2,700 resistance and silver nearing $32.00. The bullish sentiment surrounding gold suggests the potential for further gains, especially if the market can hold above key support levels. However, overbought conditions indicated by the Stochastic Oscillator suggest caution, as a pullback could emerge if profit-taking accelerates. Silver’s ability to break above $32.00 will be critical for confirming a continuation of its upward trend. Investors are encouraged to closely monitor both technical indicators and key economic data to make informed, strategic decisions in these dynamic markets.

Disclaimer -This report is provided for informational purposes only and is based on data from reputable sources. It is not to be considered as investment advice. ISA Bullion disclaims any liability for losses that may arise from reliance on the information provided. Investors are encouraged to perform their own research and consult with professional advisors before making financial decisions.