ISA Bullion Precious Metals Market Analysis – May 10, 2024

10 May 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2348
2306
2346
2309
+37.00
+1.60%
Silver
28.38
27.28
28.34
27.32
+1.02
+3.73%

Introduction:

Today’s in-depth analysis provides a comprehensive review of the gold and silver markets, highlighting the fundamental and technical factors influencing current trends. This report aims to equip investors with the necessary insights to navigate these volatile markets effectively.

 

Fundamental Analysis:

Gold prices surged amid a broad market expectation that the Federal Reserve may cut interest rates sooner than anticipated, following recent data suggesting a weakening labor market. This potential shift in monetary policy has decreased the yield on U.S. treasuries, making non-yielding assets like gold more attractive. Additionally, renewed geopolitical concerns continue to provide a tailwind for gold prices.

Technical Analysis:

Gold

The gold market is currently experiencing a bullish momentum, consistently trading above the 100-day Exponential Moving Average (EMA). As it approaches the significant psychological mark of $2,400, the potential for a rally to record highs increases, with a short-term target at $2,432 and an extended goal near $2,500.

  • Stochastics Oscillator: 97 (indicating an extremely overbought state)
  • Relative Strength Index (RSI): 59 (suggesting growing bullish momentum)
Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2316
2335
2347
2358
2371
2400
2432

Silver

Silver prices have also seen a significant upswing, moving firmly above the $28.00 mark as the gold/silver ratio declines, indicating potential for further gains.

  • Stochastics Oscillator: 98 (extremely overbought)
  • Relative Strength Index (RSI): 63 (indicating bullish conditions)
Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
27.78
28.04
28.25
28.50
28.76
29.03
29.25

Indicator Definitions:

  • Stochastics Oscillator: Measures momentum by comparing a closing price to its price range over a specific period, highlighting overbought (>80) and oversold (<20) conditions.
  • Relative Strength Index (RSI): Assesses price changes to evaluate whether conditions are overbought (>70) or oversold (<30).
Key US Economic Reports & Events
When
Actual
Expected
Previous
Prelim UoM Consumer Sentiment
6:00 PM
67.4
76.3
77.2
Prelim UoM Inflation Expectations
6:00 PM
3.5%
3.2%

Conclusion:

Navigating the complexities of the bullion markets requires a vigilant approach, where both technical and fundamental analyses play crucial roles. Our comprehensive report provides a balanced perspective to assist investors in making informed decisions within the gold and silver markets.

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 any investment decisions.