Today’s analysis provides a detailed overview of the gold and silver markets, highlighting the fundamental and technical factors influencing current trends. Our report aims to equip investors with the insights needed to navigate these markets effectively.
Gold price is off the four-week troughs but trades with a modest downside bias early Tuesday, battling the $2,300 level. The US Dollar pauses its uptrend amid a retreat in the US Treasury bond yields, courtesy of a risk-aversion wave.
A breakdown through the $2,300 mark could trigger further bearish movement. Follow-through selling below the $2,281 horizontal support will reaffirm the bearish outlook and expose the next relevant support near the $2,270-$2,248 region. On the upside, any recovery might confront stiff resistance near the $2,311 ahead of the $2,328-$2,350 region. This could allow the price to retest the $2,400 mark. The short-term Stochastics Oscillator is at 15, and the Relative Strength Index (RSI) is at 44.
Silver prices continue their downtrend that started last week. The downturn was primarily driven by China halting bullion purchases in May and a stronger-than-expected US labor market. These developments have raised concerns about silver’s value in the absence of China’s support. The weekly chart indicates silver’s near-term value at $28.00 and intermediate-term value at $25.00. The short-term Stochastics Oscillator is at 16, and the Relative Strength Index (RSI) is at 44.
In the dynamic and complex landscape of bullion markets, staying informed with both technical and fundamental analysis is crucial for making sound investment decisions. Our report strives to provide a balanced view to assist investors in navigating the intricacies of gold and silver trading.