Today’s report offers a comprehensive analysis of the gold and silver markets, focusing on the fundamental and technical factors shaping current trends. By providing key insights and actionable information, this report aims to empower investors with the knowledge necessary to navigate these markets effectively.
The US Dollar faces renewed pressure as traders digest US President-elect Donald Trump’s weekend warning directed at the ‘BRICS’ nations — Brazil, Russia, India, China, and South Africa. Trump threatened to impose 100% tariffs on these countries if they introduce a new currency or support another currency that could challenge the Greenback’s dominance.
Despite the geopolitical tensions, gold prices remain supported by ongoing market speculation surrounding a 25-basis-point (bps) interest rate cut by the US Federal Reserve (Fed) this month. The CME Group’s FedWatch Tool indicates a 65% probability of a rate cut in December, offering support to gold prices amid risk-driven fluctuations.
From a technical perspective, bearish sentiment prevails as gold sellers maintain control. The 14-day Relative Strength Index (RSI) has fallen back below the critical 50 level, reinforcing downside risks. Last week’s Bear Cross remains intact, adding further weight to the bearish outlook for gold prices.
Immediate support is seen at the previous week’s low of $2,600, with a breach below this level likely to trigger a drop toward the 100-day Simple Moving Average (SMA) at $2,572. On the upside, initial resistance lies at the $2,684 mark. A stronger rally would require a daily close above $2,731, paving the way for a potential move toward the $2,800 milestone. The Stochastics Oscillator is at 51, and the Relative Strength Index is at 46.
Silver prices have reclaimed the critical $30.00 level and are striving to maintain upward momentum. The gold/silver ratio currently trades near 87.00. As long as silver remains above the $30.00 support level, it is expected to reach the $30.76–$31.00 resistance range, signalling potential upside momentum. The short-term Stochastics Oscillator is at 35 and Relative Strength Index (RSI) is at 42.
In the ever-evolving landscape of bullion markets, staying informed through both technical and fundamental analysis is essential for making sound investment decisions. This report aims to deliver a balanced perspective, assisting investors in navigating the complexities of gold and silver trading with confidence and precision.