ISA Bullion Gold Report – 27 November 2024

27 November 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2642
2605
2631
2618
+13.00
+0.50%
Silver
30.71
29.97
30.42
30.22
+0.20
+0.66%

Introduction

In the dynamic world of gold trading, staying ahead requires comprehensive insights into the market’s fundamental and technical drivers. This report delves into the latest developments, offering in-depth analysis to help you navigate the complexities of online gold trading and make informed decisions to trade gold online with confidence.

Fundamental Analysis

Gold prices extended their recovery for the second consecutive day on Wednesday, buoyed by persistent weakness in the US Dollar and falling US Treasury bond yields. Early trading reflected reduced geopolitical tensions between Israel and Lebanon, which dampened haven demand for the Dollar.

US President-elect Donald Trump’s appointment of Scott Bessent as Treasury Secretary has reassured fiscal markets, but this sentiment weighed on Treasury yields and the US Dollar. The Federal Reserve’s November meeting minutes revealed a divided stance on further rate cuts, adding uncertainty to market sentiment and fueling interest in gold as a hedge.

Gold

Gold prices are consolidating cautiously following the sharp decline and rebound from the $2,600 mark. Traders remain vigilant due to a potential Bear Cross as the 21-day MA and 50-day MA trade in close proximity. Upward moves in gold prices may face selling pressure unless buyers establish a foothold above $2,666. Beyond this level, key resistance is seen at $2,700, with Monday’s high of $2,721 serving as the next barrier. On the downside, immediate support lies at $2,600, and a breach of this level could pave the way for a decline toward the 100-day MA at $2,572. The Stochastics Oscillator stands at 54, and the Relative Strength Index (RSI) is at 48.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2572
2600
2626
2645
2666
2684
2700

Silver

Silver remains steady as traders await clear market catalysts. While the U.S. Dollar weakened against a basket of currencies, this development had little impact on silver prices. Should silver close above $30.50, it is likely to move toward resistance at $31.18–$31.56. Conversely, a settlement below $30.00 could lead to a test of the next support zone at $29.66–$29.42. The Gold/Silver ratio hovers near the 86.60 level. The Stochastics Oscillator is currently at 35, and the Relative Strength Index (RSI) is at 43.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
29.42
29.66
30.00
30.52
30.79
31.18
31.56

Indicator Definitions

  • Stochastics Oscillator: A momentum indicator that evaluates a closing price relative to its price range over a set period. Readings above 80 indicate overbought conditions, while readings below 20 signal oversold conditions.
  • Relative Strength Index (RSI): Measures price movements to assess overbought (above 70) or oversold (below 30) market conditions.
Key US Economic Reports & Events
When
Actual
Expected
Previous
Prelim GDP q/q
5:30pm
2.8%
2.8%
2.8%
Unemployment Claims
5:30pm
213K
215K
213K
Core PCE Price Index m/m
7:00pm
0.3%
0.3%
0.3%

Conclusion

The gold and silver markets remain influenced by evolving economic conditions and geopolitical developments. Gold’s cautious consolidation near critical levels and silver’s stable trajectory highlight the importance of monitoring market movements closely. These insights are designed to empower traders in online gold trading, offering clarity and confidence as you navigate the bullion market.

At ISA Bullion (Pty) Ltd, we are committed to delivering expert analysis and actionable insights to help you succeed in the competitive world of gold trading.

Disclaimer This report is intended for informational purposes only and is based on data from reputable sources. It does not constitute investment advice. ISA Bullion (Pty) Ltd makes no guarantees regarding the accuracy or completeness of the information provided and disclaims all liability for losses resulting from reliance on this report. Investors are encouraged to conduct their own research and consult professional advisors before making any investment decisions.