ISA Bullion Gold Report – 8 July 2024

Market Overview

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

Fundamental Analysis

Gold prices are hovering around near six-week highs of $2,393 set on Friday, against a broadly subdued US Dollar. A modest recovery in US Treasury bond yields and China’s pause on gold buying for the second consecutive month in June are influencing the market.

Gold:

• The first upside barrier for XAU/USD will emerge at the $2,400 psychological level. The additional upside filter to watch is $2,426. The next potential resistance zone is seen at an all-time high of $2,450. On the downside, the initial support level for the yellow metal is located at the $2,366-$2,351 zone. Extended losses could see a drop to $2,333. The short-term Stochastics Oscillator is at 88, and the Relative Strength Index (RSI) is at 58.

Silver:

• Silver tests new highs as the gold/silver ratio pulled back below the 76.00 level. If the gold/silver ratio settles below 76.00, it will gain additional downside momentum, which will be bullish for silver. A successful test of the resistance at $30.90 – $31.20 will push silver towards the next resistance level at $32.25 – $32.50. The short-term Stochastics Oscillator is at 78, and the Relative Strength Index (RSI) is at 57.