ISA Bullion Gold Report – 3 July 2024

Market Insights

Today’s report provides a detailed analysis of the gold and silver markets, highlighting the fundamental and technical factors influencing current trends. Our goal is to equip investors with the insights needed to navigate these markets effectively.

Fundamental Analysis

Gold prices are trading around $2,330 early Wednesday as traders consider the recent US jobs data and Federal Reserve Chairman Jerome Powell’s speech, bracing for yet another busy US calendar.

Gold:

• The 50-day Moving Average (MA) near the $2,317 area might continue to act as immediate support, whereas the late June swing high around the $2,364 region may cap upward movements. Some follow-through buying should allow bulls to reclaim the $2,400 round-figure mark and aim towards challenging the all-time peak around the $2,450 area touched in May. On the downside, strong support emerges near the $2,300 mark and the $2,286 horizontal zone. The short-term Stochastics Oscillator is at 53 and the Relative Strength Index (RSI) is at 51.

Silver:

• Silver prices have been rallying since the start of the new week and managed to secure a third consecutive quarterly gain. The market’s performance was influenced by conflicting factors: US inflation data aligning with expectations bolstered prospects for potential Federal Reserve rate cuts, while higher Treasury yields and a firmer dollar exerted downward pressure. 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. In case silver manages to settle above the $30.00 level, it will move towards the resistance at $30.15 – $30.33 levels. The short-term Stochastics Oscillator is at 48 and the Relative Strength Index (RSI) is at 54.