ISA Bullion Gold Report – 21 June 2024

Market Overview

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

Fundamental Analysis

Gold price is consolidating weekly gains near the highest level in nine days at $2,366, despite the US Dollar maintaining its recovery momentum alongside rising US Treasury bond yields. Gold price looks forward to preliminary business PMI data from both sides of the Atlantic for fresh trading impetus.

Gold:

• Yesterday’s close above the 10-day MA of $2,341 could be seen as a fresh trigger for bullish traders. Further upward movement towards testing the next relevant hurdle near the $2,378 level is on the cards. The Gold price could eventually aim to reclaim the $2,400 round-figure mark. On the flip side, the 50-day MA near the $2,328 area now seems to protect the immediate downside ahead of the $2,300 round figure and the $2,285 horizontal support. The short-term Stochastics Oscillator is at 63, and the Relative Strength Index (RSI) is at 54.

Silver:

• Silver rallies as the gold/silver ratio pulled back towards the 77 level. If the gold/silver ratio declines below the support at 75.75, silver markets will gain additional upside momentum. From a technical point of view, a move above the resistance at $31.00 will open the way to test the next resistance at $31.24 – $31.48. The short-term Stochastics Oscillator is at 58, and the Relative Strength Index (RSI) is at 55.