ISA Bullion Gold Report – 26 November 2024

26 November 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2721
2615
2625
2712
-87.00
-3.21%
Silver
31.48
30.06
30.29
31.31
-1.02
-3.26%

Introduction

The gold and silver markets are witnessing dynamic movements, driven by shifting global factors and investor sentiment. In today’s report, we delve into the fundamental and technical aspects shaping current trends, providing a comprehensive analysis to help investors make informed decisions in these volatile markets.

Fundamental Analysis

Gold prices have rebounded during Tuesday’s trading session after briefly dipping to a six-day low of $2,605 earlier in the day. Market participants are now closely watching the US Federal Reserve’s (Fed) November meeting minutes, expected later today, for potential signals of further price movement.

The previous session’s corrective decline was reversed as renewed safe-haven demand emerged following a social media post by US President-elect Donald Trump. Trump announced plans to impose a 25% tariff on all imports from Mexico and Canada and an additional 10% tariff on goods from China upon assuming office on January 20. In response, the Chinese ambassador to Australia cautioned that US trade policies could have far-reaching impacts, fueling heightened uncertainty in global markets.

Gold

Gold prices are stabilizing near $2,626, with buyers adopting a cautious stance as an impending Bear Cross looms. The 21-day SMA is approaching a crossover below the 50-day SMA, and if confirmed on a daily closing basis, it would validate a bearish signal. Supporting the potential for further downside, the 14-day Relative Strength Index (RSI) has settled below the critical 50 level.

Immediate support lies at the intraday low of $2,605–$2,600, and a break below this range could push prices further down toward $2,572. On the other hand, for bullish momentum to build, gold needs a daily close above the confluence of the 21-day and 50-day SMAs at $2,667. Beyond this, resistance levels are identified at $2,705 and the recent high of $2,721.

The Stochastics Oscillator is at 56 and Relative Strength Index is at 45.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2550
2572
2600
2626
2650
2666
2684

Silver

Silver prices have pulled back as traders react to the sharp sell-off in gold markets. The gold/silver ratio has stabilized near the 87.00 level, showing minimal influence on silver’s market dynamics. Should silver close below the $30.00 threshold, it is likely to move toward the next support zone between $29.66 and $29.42.

The short-term Stochastics Oscillator is at 31 and Relative Strength Index (RSI) is at 40.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
29.42
29.66
30.00
30.32
30.75
31.18
31.56

Indicator Definitions

  • Stochastics Oscillator: A momentum indicator that evaluates a closing price relative to its range over a specific period. Overbought conditions are indicated above 80, and oversold conditions are below 20.
  • Relative Strength Index (RSI): A momentum indicator that measures price changes to assess overbought (above 70) or oversold (below 30) conditions.
Key US Economic Reports & Events
When
Actual
Expected
Previous
CB Consumer Confidence
7:00pm
111.7
111.8
108.7
New Home Sales
7:00pm
610K
725K
738K
Richmond Manufacturing Index
7:00pm
-14
-10
-14
FOMC Meeting Minutes
11:00pm
NA
NA
NA

Conclusion

The current dynamics in the bullion market underscore the impact of geopolitical tensions and trade uncertainties on investor sentiment. Gold’s cautious recovery and silver’s subdued performance highlight the importance of monitoring key support and resistance levels for potential trading opportunities. As market conditions evolve, maintaining a strategic balance between technical and fundamental analysis is crucial for informed decision-making.

At ISA Bullion, we are committed to delivering timely insights and expert analysis to empower your investment strategies in the ever-changing precious metals market.

Disclaimer This report is for informational purposes only and is based on data from reliable sources. It does not constitute investment advice. ISA Bullion makes no guarantees regarding the accuracy or completeness of the information and disclaims all liability for losses resulting from reliance on this content. Investors are encouraged to conduct their own research and consult with professional advisors before making any investment decisions. ISA Bullion, along with its directors, officers, employees, and agents, disclaims responsibility for direct or indirect losses resulting from the use of this information.