ISA Bullion Gold Report – 28 June 2024

Market Insights

Today’s report provides an in-depth examination of the gold and silver markets, offering insights into the fundamental and technical factors influencing current trends. Our objective is to equip investors with the knowledge needed to navigate these markets effectively.

Fundamental Analysis

Gold prices have snapped their rebound from two-week lows early Friday, losing ground after running into offers near the $2,330 resistance again. The next direction for Gold prices now remains in the hands of the US Personal Consumption Expenditure (PCE) inflation data.

Gold:

• Immediate resistance is near the $2,336 region, acting as a key pivotal point. Sustained strength beyond this level has the potential to lift the Gold price back towards the $2,350-$2,376 supply zone. Continued buying could negate any near-term negative bias and allow bulls to reclaim the $2,400 round-figure mark. On the downside, the $2,300 round-figure mark is likely to protect immediate losses ahead of the $2,286 horizontal support. A convincing break below this level could trigger further bearish moves toward the 100-day MA near the $2,253 area. The short-term Stochastics Oscillator is at 42, and the Relative Strength Index (RSI) is at 48.

Silver:

• Silver prices were higher on Thursday, bolstered by a weaker dollar and economic data highlighting reduced economic momentum. Business spending on equipment declined in May, and a slump in exports increased the goods trade deficit. The government confirmed sharp moderation in Q1 GDP growth. Investors are betting on two interest rate cuts this year, despite the Federal Reserve projecting only one, reducing the opportunity cost of holding non-yielding assets like silver. The short-term Stochastics Oscillator is at 27, and the Relative Strength Index (RSI) is at 47.