ISA Bullion Gold Report – 2 August 2024

02 August 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2462
2430
2445
2448
-3.00
-0.12%
Silver
29.16
28.21
28.55
29.04
-0.49
-1.69%

Market Overview

Today’s report provides a comprehensive examination of the gold and silver markets, focusing on fundamental and technical factors that drive current trends. Our objective is to equip investors with the insights necessary to navigate these markets successfully.


Fundamental Analysis

The gold price is gathering momentum to continue its recent upside early Friday, following a relatively flat close on Thursday. The price needs to secure a position above the $2,450 barrier, with its next direction heavily dependent on the upcoming US Nonfarm Payrolls data release.

Gold:

  • The gold price uptrend remains intact, but buyers face significant resistance near weekly highs, which could lead to a pullback. Buying momentum has faded, as shown by the Relative Strength Index (RSI), which is trending lower, suggesting the possibility of a correction. If XAU/USD falls below $2,446, it may experience a further drop to $2,400. Additional downside is possible if traders break below the 50-day Simple Moving Average (SMA) at $2,362, followed by the 100-day SMA at $2,334. Conversely, if XAU/USD stabilizes above the daily high at $2,468, it may target the all-time high (ATH) at $2,484, followed by the psychological $2,500 level. The short-term Stochastics Oscillator is at 77, and the Relative Strength Index is at 63.
Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2400
2420
2446
2465
2484
2500
2525

Silver:

  • Silver is losing ground as the gold/silver ratio rebounds toward the 86 level. Silver remains volatile due to significant swings in the gold/silver ratio. A move below the $28.88 level will push silver towards support at $28.73 – $28.60. The short-term Stochastics Oscillator is at 38, and the Relative Strength Index (RSI) is at 46.
Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
28.60
28.73
28.88
28.95
29.19
29.37
29.50

Indicator Definitions

  • Stochastics Oscillator: Indicates momentum by comparing a closing price to its price range over a certain period. It suggests overbought conditions above 80 and oversold conditions below 20.
  • Relative Strength Index (RSI): Measures price changes to evaluate overbought or oversold conditions. A reading above 70 indicates overbought, while below 30 suggests oversold.
Key US Economic Reports & Events
When
Actual
Expected
Previous
Average Hourly Earnings m/m
4:30pm
0.2%
0.3%
0.3%
Non-Farm Employment Change
4:30pm
114K
176K
206K
Unemployment Rate
4:30pm
4.3%
4.1%
4.1%

Conclusion

In the dynamic and ever-evolving landscape of bullion markets, staying informed with both technical and fundamental analysis is crucial for making well-informed investment decisions. Our report aims to provide a balanced perspective to assist investors in navigating the complexities of gold and silver trading.

Disclaimer This report is provided for informational purposes only, based on data from reputable sources, but is not intended as investment advice. ISA Bullion makes no guarantees as to the report's accuracy or completeness and disclaims any liability for losses that may arise from reliance on this information. Users are advised to conduct their own research and consult with professional advisors before making investment decisions. ISA Bullion, along with any associated directors, partners, officers, employees, or agents, expressly disclaims any responsibility for any direct or indirect loss or damage arising from the use or reliance on the information provided herein.