Daily Gold and Silver Market Analysis- 07 February 2025

07 février 2025
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2873
2834
2858
2865
-7.00
-0.24%
Silver
32.45
31.73
32.22
32.32
-0.10
-0.31%

Today’s analysis offers a comprehensive examination of the gold and silver markets, highlighting the fundamental and technical factors that influence current trends. Our report is designed to empower investors with the insights needed to navigate these markets successfully.

 

Fundamental Analysis

Gold continues to draw safe-haven demand amid ongoing trade war concerns. Anticipation of a Federal Reserve rate cut and low U.S. bond yields are also supportive for the XAU/USD pair. Additionally, subdued price action in the U.S. dollar favors bullish sentiment as we approach Friday’s crucial Non-Farm Payroll (NFP) report. The U.S. economy is expected to add 170,000 jobs in January, following a strong gain of 256,000 in December. The unemployment rate is projected to hold steady at 4.1%, while average hourly earnings are anticipated to rise by 3.8%, slightly down from a previous increase of 3.9%. A lower-than-expected NFP figure combined with slowing wage growth could signal softening labor market conditions, potentially reviving dovish expectations from the Fed.

Gold

The daily gold price chart shows a potential Bull Cross forming on the four-hour time frame. For bullish momentum to be validated, buyers need a four-hour candlestick to close above the falling trendline resistance at $2,862. Should this upward movement be confirmed, gold may revisit its record highs at $2,882, with the next significant target at the $2,900 level, followed by the psychological barrier at $2,929. The Relative Strength Index (RSI) is trending upward and remains supportive of this bullish outlook. The Stochastic Oscillator stands at 89, while the RSI is at 74, indicating strong momentum.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2795
2812
2837
2864
2882
2900
2929

Silver

Silver is targeting the $32.50 level, driven by the robust performance of gold markets. If silver manages to close above the resistance range of $32.66 to $33.00, it could advance toward the next resistance level around $34.00. Currently, the short-term Stochastic Oscillator is at 89, while the Relative Strength Index (RSI) sits at 65, indicating strong bullish momentum.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
31.45
31.72
32.00
32.28
32.66
33.00
33.36

Indicator Definitions

  • Stochastics Oscillator: This indicator measures momentum by comparing a closing price to its price range over a specific period. It indicates overbought conditions when above 80 and oversold conditions when below 20.
  • Relative Strength Index (RSI): The RSI evaluates price changes to identify overbought or oversold conditions. A reading above 70 signifies overbought conditions, while a reading below 30 indicates oversold conditions.
Key US Economic Reports & Events
When
Actual
Expected
Previous
Average Hourly Earnings m/m
5:30pm
0.5%
0.3%
0.3%
Non-Farm Employment Change
5:30pm
143K
169K
256K
Unemployment Rate
5:30pm
4.0%
4.1%
4.1%
Prelim UoM Consumer Sentiment
7:00pm
67.8
71.9
71.1
Prelim UoM Inflation Expectations
7:00pm
4.3%
3.3%

Conclusion

In the dynamic and multifaceted world of bullion markets, being well-informed through both technical and fundamental analysis is essential for making sound investment decisions. Our report aims to offer a balanced perspective to help investors navigate the complexities of gold and silver trading effectively.

Disclaimer This report is intended for informational purposes only and is based on data from reputable sources. It does not constitute investment advice. ISA BULLION makes no guarantees regarding the accuracy or completeness of the report and disclaims any liability for losses that may result from reliance on this information. Users are encouraged to conduct their own research and consult with professional advisors before making investment decisions. ISA BULLION, along with its directors, partners, officers, employees, and agents, expressly disclaims any responsibility for any direct or indirect losses or damages arising from the use or reliance on the information presented herein.