Today’s report comprehensively analyses the gold and silver markets, highlighting the fundamental and technical factors driving current price trends. Designed to equip investors with actionable insights, this analysis offers the tools needed to navigate these dynamic markets confidently.
Gold prices are capitalizing on a pause in the rise of US Treasury yields, supported by growing expectations of further stimulus from China following its weaker-than-expected inflation data. China’s Consumer Price Index (CPI) for November rose by just 0.2% year-on-year (YoY), down from 0.3% in October, signalling slower economic momentum and increasing the likelihood of additional policy support.
Meanwhile, geopolitical risks remain elevated due to the sudden collapse of Syria’s government over the weekend, which has sustained demand for safe-haven assets like gold. Investor sentiment is also shaped by expectations of a US Federal Reserve rate cut, with markets currently pricing in an 86% probability of a 25-basis-point (bps) reduction at next week’s policy meeting. The CME Group’s FedWatch Tool suggests a 22% chance of another 25 bps rate cut at the January 2025 Fed meeting.
Gold prices are increasing, with the daily chart signalling stronger buying momentum. The 14-day Relative Strength Index (RSI) has pierced above the midline, indicating renewed bullish sentiment. Gold is now attempting to break out of its recent range, pushing above the 50-day Simple Moving Average (SMA) at $2,652. A daily close above this level would strengthen the ongoing recovery and set the stage for further gains.
Key resistance levels lie at the psychological $2,700 mark, followed by the November 25 high of $2,723. On the downside, the 21-day Moving Average (MA) at $2,633 will act as immediate support if bullish momentum weakens. Should sellers regain control, the next targets would be the prior week’s low of $2,613 and the critical $2,600 mark, with the 100-day SMA at $2,582 as a major support level.
The Stochastics Oscillator is 48, and the Relative Strength Index is 54.
Silver prices have rallied toward the $32.00 mark as the gold/silver ratio declined below 83.50. If silver holds above the $31.66 support level, it is poised to climb toward the next resistance zone at $32.33–$32.66.
This bullish momentum is supported by the Stochastics Oscillator, which reads 78, indicating near overbought conditions. Meanwhile, the Relative Strength Index (RSI) stands at 56, suggesting moderate bullish sentiment in the market.
The short-term Stochastics Oscillator is 78, and the Relative Strength Index (RSI) is 56.
In the ever-evolving bullion markets, staying well-informed through both technical and fundamental analysis is essential for making sound investment decisions. This report provides a balanced perspective, helping investors navigate the complexities of gold and silver trading with clarity and confidence.