ISA Bullion Gold Report – 25 June 2024

Market Overview

Today’s analysis offers a comprehensive examination of the gold and silver markets, providing insights into the fundamental and technical factors driving current trends. Our report aims to equip investors with the insights needed to navigate these markets effectively.

Fundamental Analysis

Gold price trades in negative territory on Tuesday despite the weaker Greenback. The stronger-than-expected US Purchasing Managers Index released last week triggered Federal Reserve officials to push out the timing of the first interest rate cut this year, which continues to cap the gold’s upside.

Gold:

• Friday’s decline resulted in a failed breakout through the 50-day Moving Average resistance. The subsequent downfall may lead near the $2,300 mark and retest the 100-day MA support near the $2,278 area. On the upside, resistance is seen near the $2,341-$2,347 levels en route to the $2,400 round-figure mark. Sustained strength beyond this will negate any near-term negative outlook and allow a retest of the all-time peak around the $2,450 area touched in May. The short-term Stochastics Oscillator is at 42, and the Relative Strength Index (RSI) is at 46.

Silver:

• Silver is under strong pressure as the gold/silver ratio rebounds towards the 78.50 level. Volatility indicators are in moderate territory, allowing room for momentum in both directions. Reclaiming $30.00 levels is crucial for the uptrend to remain intact. The short-term Stochastics Oscillator is at 36, and the Relative Strength Index (RSI) is at 47.