ISA Bullion Precious Metals Market Overview – May 16, 2024

16 May 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2390
2351
2386
2355
+31.00
+1.31%
Silver
29.80
28.43
29.73
28.60
+1.13
+3.95%

Introduction:

Today’s analysis offers an in-depth examination of the gold and silver markets, assessing the fundamental and technical factors that drive their movements. This report aims to provide investors with the insights necessary to effectively navigate these fluctuating markets.

 

Fundamental Analysis:

Gold and silver prices surged today amid a weaker US Dollar, driven by the latest US inflation data which showed a slowdown in April. This development has fueled speculation of potential rate cuts by the US Federal Reserve later this year, enhancing the appeal of non-yielding assets like gold.

 

Technical Analysis:

Gold

Gold prices have continued their upward trajectory for the second consecutive day, approaching the critical $2400 mark. If the momentum sustains above the recent high of $2378, we could see gold testing the April 19 high of $2417, with the potential to reach the all-time high of $2432. Conversely, a dip below $2359 could trigger a downward correction towards $2300.

  • Stochastics Oscillator: 91 (indicating an overbought condition)
  • Relative Strength Index (RSI): 67 (suggesting strong bullish momentum)
Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2300
2323
2359
2392
2400
2417
2432

Silver

Silver has reached new highs today, buoyed by a declining gold/silver ratio and falling Treasury yields. A consolidation above the $29.50 mark could open the path towards the significant $30.00 level.

  • Stochastics Oscillator: 91 (also indicating an overbought condition)
  • Relative Strength Index (RSI): 67 (reflecting strong buying pressure)
Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
28.75
29.00
29.25
29.50
29.75
30.00
30.25

Indicator Definitions:

  • Stochastics Oscillator: A momentum indicator that assesses the rate of exchange relative to the price range over a set period. An overbought condition suggests a potential reversal or pullback.
  • Relative Strength Index (RSI): This measures the speed and change of price movements. An RSI above 70 typically indicates overbought conditions, signaling a potential decline.
Key US Economic Reports & Events
When
Actual
Expected
Previous
Unemployment Claims
4:30 PM
222K
219K
231K
Building Permits
4:30 PM
1.44M
1.48M
1.46M
Philly Fed Manufacturing Index
4:30 PM
4.5
7.7
15.5
Industrial Production m/m
5:15 PM
0.0%
0.1%
0.4%

Conclusion:

Understanding the nuances of the bullion markets is essential for strategic investment. Our daily reports strive to deliver balanced insights, blending technical and fundamental analysis to guide your investment decisions in the gold and silver markets.

Disclaimer: This document is intended for informational purposes only, not as investment advice. ISA BULLION disclaims any liability for decisions based on this data. We recommend investors perform their own research and consult with professional advisors before making any financial decisions.