Today’s analysis offers a comprehensive overview of the gold and silver markets, highlighting the fundamental and technical factors influencing current trends. Our report is designed to empower investors with the insights needed to navigate these markets effectively.
Gold regained positive momentum on Monday, driven by ongoing weakness in the US Dollar. Concerns surrounding Trump’s tariffs have further bolstered the safe-haven XAU/USD pair. The current fundamental and technical landscape suggests the potential for further gains. After registering eight consecutive weeks of increases, gold prices start the week positively, supported by the continued decline in US Dollar value and Treasury bond yields. Traders are also looking to capitalize on gold’s record rally ahead of the upcoming US-Russia meeting and the release of the Fed’s January meeting minutes.
The daily chart indicates that gold prices have successfully defended the rising trendline support at $2,885. The 14-day Relative Strength Index (RSI) has eased from overbought levels, currently positioned in the bullish zone around 66. If this rebound continues, gold buyers may target the record high of $2,943, with the February 12 peak of $2,909 likely to test bearish commitments first. The next key resistance level is at the $2,970 mark. Conversely, if sellers breach the February low of $2,864 decisively, we could see a new downward trend towards the psychological support at $2,850. Further south, the 21-day Simple Moving Average (SMA) at $2,822 may come into play. The Stochastics Oscillator stands at 65, reinforcing the bullish sentiment alongside the RSI at 66.
Silver prices (XAG/USD) have begun to recover from recent losses, trading near $32.40 per troy ounce during Monday’s Asian session. A daily chart analysis indicates a continued bullish trend, with prices moving upward within an ascending channel.
Initial resistance is expected at the upper boundary of this channel, around the $33.10 mark, followed by a four-month high of $33.41 reached on February 14. On the downside, key support levels are found at the nine-day EMA near $32.08, the 14-day EMA at $31.85, and the lower boundary of the ascending channel at $31.60. The short-term Stochastics Oscillator is currently at 46, while the Relative Strength Index (RSI) sits at 59, reflecting a generally positive outlook for silver.
In the dynamic and complex world of bullion markets, it’s essential to stay informed through both technical and fundamental analysis to make well-informed investment decisions. Our report aims to offer a balanced perspective to help investors navigate the intricacies of gold and silver trading effectively.