ISA Bullion Gold Report – 21 October 2024

21 October 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2722
2692
2721
2693
+28.00
+1.04%
Silver
33.73
31.70
33.70
31.77
+1.93
+6.07%

Introduction

In today’s volatile economic environment, gold and silver continue to assert their dominance as critical assets for investors seeking both security and growth. With central banks maintaining accommodative monetary policies and geopolitical tensions influencing market sentiment, precious metals are becoming increasingly attractive. This report delivers a deep dive into the latest trends driving gold and silver prices, equipping investors with the insights necessary to make informed decisions and capitalize on emerging opportunities.


Fundamental Analysis

Gold:

Gold extended its rally on Monday, touching a new high of $2,730 amid supportive central bank policies and heightened Middle East tensions. The precious metal remains well-supported by the weakening U.S. dollar and political uncertainties in the U.S., providing a favorable backdrop for further gains. However, the 14-day Relative Strength Index (RSI) has flattened, signaling potential buyer exhaustion. A pullback could occur if gold fails to maintain the $2,700 level, with immediate support at $2,684. On the upside, should buyers clear $2,750, the next psychological resistance at $2,800 comes into play. The Stochastic Oscillator is at 64, while the RSI holds at 74, signaling overbought conditions.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2684
2700
2718
2730
2750
2775
2800

Silver:

Silver is catching up to its precious metal counterpart, driven by a new directive from Russia’s Central Bank to diversify its reserves by purchasing silver. The metal reached $33.80 on Monday, with expectations of continued bullish momentum as long as the global economic environment remains supportive. Silver is currently testing resistance at $34.00, with potential upside to $34.50 if buyers maintain control. The short-term Stochastic Oscillator is elevated at 86, and the RSI is at 70, suggesting that the market could experience a near-term pullback before advancing further.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
33.00
33.33
33.60
33.80
34.00
34.25
34.50

Definitions of Key Indicators

  • Stochastic Oscillator: Measures momentum by comparing an asset’s closing price to its price range over a specific period. Overbought conditions are indicated above 80, while oversold conditions appear below 20.
  • Relative Strength Index (RSI): This technical indicator measures the strength and speed of price movements. A reading above 70 signals overbought conditions, while a reading below 30 indicates oversold conditions.
Key US Economic Reports & Events
When
Actual
Expected
Previous
CB Leading Index m/m
6:00 pm
-0.5%
-0.3%
-0.2%
FOMC Member Kashkari Speaks
9:00 pm
NA
NA
NA

Conclusion

As gold and silver continue to gain traction amid global uncertainties, investors must closely monitor key support and resistance levels to assess potential market movements. Gold’s ability to hold above $2,700 will be critical in maintaining its upward trajectory, while silver’s next test lies in breaking through $34.00. Technical indicators suggest both metals could face a near-term pullback due to overbought conditions, but the underlying fundamentals remain strong. Staying attuned to central bank policies and geopolitical developments will be essential for making informed trading decisions in the bullion markets.

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