ISA Bullion Gold Report – 7 November 2024

07 November 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2749
2652
2659
2743
-84.00
-3.00%
Silver
32.74
30.82
31.16
32.65
-1.49
-4.56%

Introduction

In the wake of the U.S. election outcome and a rising dollar, the gold and silver markets are facing significant shifts. Investors are closely watching these safe-haven assets, which now find themselves under pressure from fresh economic data and political developments. Today’s report provides in-depth analysis, helping investors stay informed and prepared to navigate this period of heightened volatility.

Fundamental Analysis

Gold:

Gold continues its descent amid a dollar rally triggered by the election results. The price has broken through key Fibonacci support levels, indicating further potential downside. Buyers will need to defend the critical support at $2,641, aligned with the 50-day SMA and the 78.6% Fibonacci retracement. On the upside, any recovery may encounter resistance around $2,700, where the 50% Fibonacci retracement aligns. The Short-Term Stochastic Oscillator is currently at 36, with an RSI of 42, reflecting subdued momentum but potential for a modest recovery.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2604
2623
2641
2658
2672
2700
2727

Silver:

Silver has also experienced a downturn, with support expected around the $30.66 – $30.33 zone. A break below $31.00 could lead to further losses, potentially targeting the $30.00 level. The RSI is currently at 42, and the Stochastic Oscillator at 21, signalling an oversold condition that might attract short-term buyers.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
30.00
30.33
30.66
31.10
31.50
31.78
32.06

Definitions of Key Indicators

  • Short-Term Stochastic Oscillator: A momentum indicator that compares a closing price to its range over a given period. Values above 80 indicate overbought conditions, while values below 20 signal oversold levels.
  • Relative Strength Index (RSI): This indicator gauges the magnitude of price changes to identify overbought conditions above 70 and oversold conditions below 30, offering insight into potential reversals.
Key US Economic Reports & Events
When
Actual
Expected
Previous
Unemployment Claims
5:30pm
221K
223K
216K
Federal Funds Rate
11:00pm
4.75%
4.75%
5.00%
FOMC Statement
11:00pm
FOMC Press Conference
11:00pm

Conclusion

As economic uncertainties and political changes drive market volatility, gold and silver prices test significant support levels. Gold’s defence at around $2,641 and silver’s support at $30.66 will be key to watch in the coming sessions. These technical levels, coupled with momentum indicators signalling oversold conditions, may present strategic entry points for investors. Staying adaptable and well-informed remains critical as the market reacts to economic developments and policy announcements.

Disclaimer - This report is for informational purposes only and is based on data from reputable sources. It does not constitute investment advice. ISA Bullion disclaims any liability for losses arising from reliance on the information provided. Investors should conduct their own research and consult with professional advisors before making financial decisions.