This report offers a comprehensive overview of the gold and silver markets, providing insights into the fundamental and technical factors shaping current trends. The goal is to equip investors with the information needed to navigate these markets confidently.
Gold prices extended their uptrend for the fifth consecutive session on Friday, climbing to a nearly two-week high of $2,690-2,691 during the Asian session. Escalating tensions in the Russia-Ukraine conflict have driven investors toward traditional safe-haven assets, serving as a significant factor supporting the precious metal. Meanwhile, speculations about persistently high inflation limiting the Federal Reserve’s (Fed) ability to ease monetary policy continue to underpin elevated US Treasury bond yields, though these factors have not impeded gold’s positive momentum.
The overnight breakout above the $2,661 confluence—a level defined by the 50% retracement of the recent pullback from the all-time peak and the 100-period Simple Moving Average (SMA) on the 4-hour chart—acted as a crucial trigger for bullish activity. Additionally, technical indicators on the daily chart have started gaining positive traction, bolstering expectations for further upward movement in gold prices. This suggests the potential for follow-through strength beyond the $2,700 level, targeting the $2,733-2,754 supply zone. Conversely, the $2,661 confluence hurdle now appears to provide immediate downside protection, followed by support levels in the $2,636-2,600 range. The Stochastics Oscillator is at 60, while the Relative Strength Index (RSI) stands at 54.
Silver experienced a decline, dropping below the $31.00 level, while the gold/silver ratio climbed above the 86.50 mark. From a technical perspective, silver remains constrained below the resistance zone of $31.27 – $31.88. The short-term Stochastics Oscillator is currently at 36, and the Relative Strength Index (RSI) stands at 45.
Gold’s sustained rally above $2,661 underscores strong bullish momentum, with $2,700 and $2,733 marking critical resistance levels for further gains. Silver remains subdued below $31.00, with key resistance at $31.27 and $31.88. Investors are encouraged to remain informed and adaptable, leveraging these insights to identify opportunities in the volatile bullion market.