ISA Bullion Gold Report – 4 July 2024

04 July 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2365
2326
2356
2329
+27.00
+1.16%
Silver
30.67
29.47
30.47
29.51
+0.96
+3.25%

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 objective is to equip investors with the insights needed to navigate these markets effectively.

Fundamental Analysis

Gold price is looking to extend the previous upsurge early Thursday, sitting at the highest level in over a week near $2,360. Sustained US Dollar weakness alongside sluggish US Treasury bond yields underpin Gold prices amid the July 4 US holiday-thinned market conditions.

Gold:

  • The overnight breakout, along with the fact that oscillators on the daily chart have again started gaining positive traction, favor bullish traders. Some follow-through buying and sustained strength beyond the $2,366 area will reaffirm the constructive outlook, setting the stage for a move toward reclaiming the $2,400 mark. The Gold price might then extend the positive momentum and aim to challenge the all-time peak, around the $2,450 zone touched in May. On the flip side, any meaningful pullback now seems to attract fresh buyers near the 50-day MA support, around the $2,333 region. The next relevant support is pegged near the $2,314 which, if broken, could make the Gold price vulnerable to weaken further below the $2,300 mark. The short-term Stochastics Oscillator is at 72 and the Relative Strength Index (RSI) is at 55.
Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2300
2314
2333
2357
2366
2387
2400

Silver:

  • Silver rallied above $30.50 as the gold/silver ratio pulled back towards the 77 level. Silver prices have been rallying since the start of a new week and managed to secure a third consecutive quarterly gain. The market’s performance was influenced by conflicting factors: U.S. 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. The short-term Stochastics Oscillator is at 68 and the Relative Strength Index (RSI) is at 51.
Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
29.66
30.00
30.15
30.33
30.50
30.66
30.80

Indicator Definitions

  • Stochastics Oscillator: Indicates momentum by comparing a closing price to its price range over a certain period. It suggests overbought conditions above 80 and oversold conditions below 20.
  • Relative Strength Index (RSI): Measures price changes to evaluate overbought or oversold conditions. A reading above 70 indicates overbought, while below 30 suggests oversold.
Key US Economic Reports & Events
When
Actual
Expected
Previous
NO DATA: US Independence Day

Summary

In the complex and ever-evolving landscape of bullion markets, staying informed with both technical and fundamental analysis is crucial for making well-informed investment decisions. Our report strives to provide a balanced view to assist investors in navigating the intricacies of gold and silver trading.

Disclaimer This report is provided for informational purposes only, based on data from reputable sources, but is not intended as investment advice. ISA Bullion makes no guarantees as to the report's accuracy or completeness and disclaims any liability for losses that may arise from reliance on this information. Users are advised to conduct their own research and consult with professional advisors before making investment decisions. ISA Bullion, along with any associated directors, partners, officers, employees, or agents, expressly disclaims any responsibility for any direct or indirect loss or damage arising from the use or reliance on the information provided herein.