ISA Bullion Gold Report – 29 July 2024

Market Overview

Today’s report delivers a comprehensive analysis of the gold and silver markets, highlighting the fundamental and technical factors influencing current trends. Our objective is to provide investors with the insights required to navigate these markets effectively.

Fundamental Analysis

Gold price is building on its previous recovery early Monday, having defended the key support at $2,360 on a weekly closing basis. Gold buyers fight back control heading into the critical central banks’ bonanza week, with the US Federal Reserve (Fed) – the main event risk for the bright metal.

Gold:

• Momentum above the $2,400 round figure is likely to confront some resistance near the $2,418 area ahead of last week’s swing high, around the $2,433 region. A sustained strength beyond the latter will suggest that the corrective decline from the all-time peak touched earlier this month has run its course and set the stage for additional gains. The gold price might then climb to the $2,469-$2,470 intermediate resistance and challenge the record peak, around the $2,483-$2,484 zone. On the flip side, weakness below the $2,375 level might continue to attract buyers. A sustained breakdown through the said support, however, will be seen as a fresh trigger for bearish traders and drag the gold price to the next relevant support near the $2,323 area. The downward trajectory could extend further towards testing the $2,300 round-figure mark for the first time since late June. The short-term Stochastics Oscillator is at 31, and the Relative Strength Index is at 52.

Silver:

• Silver is trying to rebound after the strong pullback. The gold/silver ratio made an attempt to settle above the 86 level, which was bearish for silver. If silver settles back above the $28.00 level, it will head towards the nearest resistance, which is located in the $28.42 – $28.60 range. The short-term Stochastics Oscillator is at 18, and the Relative Strength Index (RSI) is at 34.