ISA Bullion Precious Metals Market Analysis – 18 April 2024

18 April 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2395
2354
2360
2382
-22.00
-0.92%
Silver
28.81
28.06
28.21
28.08
+0.13
+0.46%

Introduction:

Today’s market analysis dives deep into the gold and silver sectors, detailing the fundamental and technical factors that are currently influencing market movements. Our goal is to provide investors with actionable insights to effectively navigate these markets.

 

Fundamental Analysis:

Gold prices retreated from close to weekly highs during the North American session on Wednesday amid an improvement in risk appetite. The bullish impulse arrived despite hawkish commentary by US Federal Reserve (Fed) officials. US Treasury bond yields dropped and undermined the Greenback, capping Gold’s plunge. Tensions in the Middle East had subsided after Israeli officials commented that they considered striking Iran on Monday but decided to wait, according to Axios. In the meantime, the US will impose new sanctions on Iran in the upcoming days, said Jake Sullivan, the White House National Security Advisor.

 

Technical Insights:

Gold

Gold looks upwardly biased despite retreating toward the $2,370 region. The formation of a Doji on Tuesday suggests that buyers lack the momentum to extend the precious metal’s gains, opening the door for a pullback. The first support would be the $2,350 mark, followed by the April 15 daily low of $2,324. Once surpassed, Gold might test $2,300. On the other hand, if buyers drag prices toward $2,400, a test of the all-time high of $2,431 is on the cards.

  • Stochastics Oscillator: 75
  • Relative Strength Index (RSI): 72
Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2300
2324
2350
2376
2400
2431
2450

Silver

Silver gained some ground as gold/silver ratio pulled back below the 84 level. It rallied a little bit during the trading session here on Wednesday, as we continue to consolidate around the crucial $28.50 level. This is an area that has been important multiple times, and therefore the market will tread with caution through the grey area between here and $30.

  • Stochastics Oscillator: 70
  • Relative Strength Index (RSI): 66
Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
27.75
28.00
28.28
28.48
28.75
29.00
29.25

Indicator Definitions:

  • Stochastics Oscillator: Assesses the momentum by comparing the closing price to its price range over a specified period, indicating overbought (>80) or oversold (<20) conditions.
  • Relative Strength Index (RSI): Evaluates price movements to determine overbought (>70) or oversold (<30) states, providing insight into potential reversals.
Key US Economic Reports & Events
When
Actual
Expected
Previous
Unemployment Claims
4:30 PM
212K
215K
211K
Philly Fed Manufacturing Index
4:30 PM
15.5
1.5
3.2
Existing Home Sales
6:00 PM
4.19M
4.20M
4.38M

Conclusion:

Navigating the complexities of the bullion markets requires a nuanced understanding of both technical and fundamental factors. Our analysis is designed to offer a balanced perspective, aiding investors in making informed decisions within the gold and silver markets.

Disclaimer: This report, sourced from reputable data, is intended for informational purposes only and not as direct investment advice. ISA BULLION advises all readers to conduct their own research and consult with professional advisors before engaging in investment activities. ISA BULLION disclaims any liability for direct or indirect losses that may result from reliance on the information contained within this document.