ISA Bullion Gold Trading Report – 7 August 2024

Market Overview

Today’s report provides an in-depth look at the gold and silver markets, offering insights into the fundamental and technical factors driving current trends. Our analysis aims to equip investors with the information needed to navigate these markets effectively.

Fundamental Analysis

Gold prices are attempting to rebound above $2,390 in Wednesday’s Asian session as the US Dollar consolidates its recovery gains alongside US Treasury bond yields.

Gold:

• The gold price closed below the key 21-day Simple Moving Average (SMA), signaling a renewed downside. The 14-day Relative Strength Index (RSI) has turned bearish, suggesting potential further declines. Immediate support is at the 50-day SMA of $2,368, with a psychological level at $2,350. If these levels are breached, the 100-day SMA at $2,344 could act as a barrier. To regain bullish momentum, the gold price needs to surpass $2,400 and target $2,417. The next significant resistance is at $2,431. The short-term Stochastics Oscillator is at 54, and the Relative Strength Index is at 51.

Silver:

• The recent drop below the 100-day SMA and the failure to hold above $29.00 favor bearish traders. Resistance is at $27.50, with potential short-covering lifting prices beyond $28.00 to $28.20. Further momentum could test the 100-day SMA at $28.70. Support is at $26.75-$26.70, with a break below this reinforcing a bearish outlook towards $26.00. The short-term Stochastics Oscillator is at 44, and the Relative Strength Index (RSI) is at 35.