ISA Bullion Market Analysis – May 8, 2024

08 May 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2329
2310
2315
2326
-11.00
-0.47%
Silver
27.53
27.15
27.23
27.45
-0.22
-0.80%

Introduction:

Today’s analysis offers a detailed examination of the gold and silver markets, focusing on both fundamental and technical dynamics that are influencing current trends. Our aim is to provide investors with strategic insights that enable effective navigation of these volatile markets.

 

Fundamental Analysis:

Gold prices saw a modest uptick during the Asian trading session amid heightened geopolitical tensions and central bank buying, which bolstered safe-haven demand. Despite this, hawkish remarks from Federal Reserve officials have tempered expectations for rate cuts in 2024, which could pressure gold prices downward.

Technical Analysis:

Gold

Gold is currently trading above the key 100-day Exponential Moving Average (EMA), maintaining a positive outlook. However, it remains within a descending trend channel established since mid-April, signaling potential resistance near the $2,300 psychological level. A break below this could lead to further declines towards the channel’s lower boundary at $2,265.

  • Stochastics Oscillator: 30 (indicating potential oversold conditions)
  • Relative Strength Index (RSI): 53 (suggesting neutral momentum)
Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2265
2280
2300
2315
2335
2347
2363

Silver

Silver reflects a cautious market sentiment with a slight decline, aligning with the movements in gold. However, it maintains potential for an upward trajectory if it can breach resistance levels near $27.72 to $28.00.

  • Stochastics Oscillator: 45 (suggesting neutrality)
  • Relative Strength Index (RSI): 54 (also indicating neutral conditions)
Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
26.64
26.86
27.08
27.23
27.50
27.72
28.00

Indicator Definitions:

  • Stochastics Oscillator: Measures momentum by comparing the closing price to its range over a specified period, identifying overbought conditions when above 80 and oversold conditions when below 20.
  • Relative Strength Index (RSI): Assesses rate of price changes to evaluate overbought or oversold market conditions.

Key Economic Reports & Event

Key US Economic Reports & Events
When
Actual
Expected
Previous
10-year Bond Auction
9:01 PM
NA
4.56|2.3

Conclusion:

Navigating the bullion markets requires an informed approach, combining technical and fundamental analysis to guide investment decisions. Our comprehensive report aims to provide a balanced perspective, aiding investors in their strategic engagement with gold and silver markets.

Disclaimer: This report is provided for informational purposes only, based on reputable sources but not intended as investment advice. ISA BULLION disclaims any liability for reliance on this information and advises all clients to conduct their own research and consult with professional advisors before making any investment decisions.