ISA Bullion Gold Report – 24 October 2024

24 October 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2758
2708
2717
2748
-31.00
-1.13%
Gold
34.88
33.43
33.72
34.83
-1.11
-3.19%

Introduction

In today’s fast-paced and unpredictable global economy, gold and silver continue to serve as essential assets for investors seeking both security and potential growth. Amid growing concerns about inflation, geopolitical tensions, and fluctuating economic indicators, these precious metals remain attractive as reliable hedges against uncertainty. This report offers a detailed analysis of the current gold and silver market, combining fundamental and technical insights to help investors navigate these volatile markets with confidence.


Fundamental Analysis

Gold:

Gold prices saw a modest pullback, closing at $2,717, down 1.13% from the previous day, as profit-taking set in following the recent all-time high. Despite this, the precious metal continues to be supported by retreating U.S. bond yields and renewed geopolitical risks. On the technical front, gold is currently backed by the Fibonacci Retracement level of $2,718, providing a key level of support for the market. Buyers will be targeting the psychological barrier of $2,750 if momentum strengthens. However, if the price falls below $2,700, further support may be found at $2,689. The Stochastic Oscillator is elevated at 87, while the RSI reads 66, indicating overbought conditions that could lead to short-term price corrections.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2689
2700
2718
2729
2750
2780
2800

Silver:

Silver prices also declined, closing at $33.72, down 3.19%. The metal’s weakness followed as the gold/silver ratio crossed the 80 level. Silver faces immediate support at $33.50, with further downside potential if the price falls below $33.33. Resistance remains strong at $34.00. The Stochastic Oscillator is at 85, while the RSI is at 65, indicating silver remains near overbought levels but has room for a recovery if key resistance levels are tested.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
33.33
33.50
33.66
33.85
34.00
34.25
34.50

Definitions of Key Indicators

  • Stochastic Oscillator: Measures market momentum by comparing an asset’s closing price to its price range over a defined period. Readings above 80 indicate overbought conditions, while readings below 20 signal oversold conditions.
  • Relative Strength Index (RSI): Evaluates the magnitude of price movements to indicate overbought or oversold conditions. A reading above 70 suggests overbought conditions, while below 30 signals oversold conditions.
Key US Economic Reports & Events
When
Actual
Expected
Previous
Unemployment Claims
4:30pm
227K
243K
241K
Flash Manufacturing PMI
5:45pm
47.8
47.5
47.3
Flash Services PMI
5:45pm
55.3
55.0
55.2
New Home Sales
6:00pm
738K
719K
716K

Conclusion

Gold and silver are currently navigating through critical support and resistance levels, with both metals showing signs of potential short-term corrections. Gold’s ability to stay above the $2,718 Fibonacci level will be crucial in maintaining its upward momentum, while silver must hold above $33.50 to avoid further declines. Investors should monitor key technical indicators and economic data closely to identify opportunities and manage risk effectively in these volatile markets.

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