ISA Bullion Precious Metals Daily Analysis – May 23, 2024

23 May 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2426
2375
2382
2421
-39.00
-1.61%
Silver
32.21
30.75
30.76
31.96
-1.20
-3.75%

Introduction:

Today’s report provides an in-depth analysis of the gold and silver markets, offering insights into the fundamental and technical factors influencing their current trends. Our goal is to equip investors with the knowledge necessary to effectively navigate these volatile markets.

Fundamental Analysis:

Gold prices have declined below the $2,400 threshold amid a bearish market reaction to the hawkish tone set by the latest Federal Reserve minutes. The minutes suggest a readiness to tighten policy further if economic risks materialize, dampening the appeal of non-yielding assets like gold.

Technical Analysis:

Gold

Gold is experiencing a downtrend, though its broader bullish outlook remains intact. Key resistance is near the upper Bollinger Band at $2,450, with a breach potentially targeting the $2,500 mark. Initial support lies at $2,350, followed by further levels at $2,323 and $2,300 if declines continue.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2300
2323
2350
2364
2378
2400
2416

Silver

Silver is seeing a pullback as the gold/silver ratio climbs, indicating relative strength in gold. Immediate support for silver is at $30.53, with potential further declines to the $30.00 psychological level if the downtrend persists.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
30.00
30.20
30.53
30.75
31.00
31.26
31.50

Indicator Definitions:

  • Stochastics Oscillator: Measures momentum by comparing the closing price to its price range over a given period, indicating overbought or oversold conditions.
  • Relative Strength Index (RSI): Assesses the rate of price changes to determine if an asset is overbought (above 70) or oversold (below 30).
Key US Economic Reports & Events
When
Actual
Expected
Previous
Unemployment Claims
4:30 PM
215K
220K
223K (Revised from 222K)
Flash Manufacturing PMI
5:45 PM
50.9
50.0
50.0 (Revised from 49.9)
Flash Services PMI
5:45 PM
54.8
51.2
51.3 (Revised from 50.9)
New Home Sales
6:00 PM
634K
677K
665K (Revised from 693K)

Conclusion:

The complex and ever-evolving landscape of bullion markets demands a comprehensive understanding of both technical and fundamental factors. Our analysis aims to provide a balanced perspective, helping investors make informed decisions in gold and silver trading.

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