Daily Gold and Silver Market Analysis – 26 December 2024

26 December 2024
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2621
2610
2613
2613
0
0
Silver
29.81
29.45
29.60
29.64
-0.04
-0.13%

This report provides a detailed overview of the gold and silver markets, focusing on the fundamental and technical factors influencing current trends. Our goal is to empower investors with insights to navigate these markets confidently.

Fundamental Analysis

Gold remains confined within a narrow range above $2,600 following the holiday period, with limited follow-through buying momentum. Geopolitical tensions and trade war concerns continue to support safe-haven demand for XAU/USD, while the Federal Reserve’s hawkish stance bolsters the US Dollar, capping gold’s gains. Market activity remains subdued as investors embrace the festive mood, with major markets preparing to close for the Christmas holidays. Weak Wall Street performance is also strengthening the Greenback, further supported by rising government bond yields.

Gold

The short-term technical outlook for gold remains bearish, with the downside bias persisting as the 14-day Relative Strength Index (RSI) holds below the 50 level. Reclaiming the 50-day Exponential Moving Average at $2,641 on a daily closing basis is essential for reversing the downtrend. A successful close above this level could target $2,666, with further resistance expected between $2,692 and $2,700, posing a challenge to bearish momentum.

If the recovery stalls, sellers are likely to retest the 100-day EMA, currently serving as support at $2,591. A break below this level could expose the $2,566–$2,533 range. The Stochastics Oscillator is at 26, while the RSI is at 46.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2533
2566
2591
2627
2641
2666
2692

Silver

Silver remains capped below the $30.00 level as traders await new catalysts. The RSI is in neutral territory, suggesting room for momentum to build if suitable triggers emerge. A decisive move above $30.00 could propel silver toward resistance at $31.45–$31.75. Meanwhile, the gold/silver ratio has crossed above the 88 level again, reflecting relative weakness in silver.

A weekly close above $30.00 would further support gains toward resistance at $30.36–$31.69. Conversely, a sustained decline may lead silver toward the 200-day EMA at $29.06, with additional support levels at $28.70 and $28.33. The short-term Stochastics Oscillator is at 23, and the RSI reads 40.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
28.70
29.06
29.42
29.66
30.00
30.36
30.69

Indicator Definitions

  • Stochastics Oscillator: A momentum indicator that compares a closing price to its price range over a specific period. Overbought conditions are indicated above 80, while oversold conditions are below 20.
  • Relative Strength Index (RSI): Measures price changes to evaluate market conditions. Readings above 70 indicate overbought levels, while below 30 suggest oversold conditions.

 

Key US Economic Reports & Events
When
Actual
Expected
Previous
Unemployment Claims
5:30 PM
219K
223K
220K

Conclusion

In the dynamic and evolving bullion markets, staying updated on both technical and fundamental factors is crucial for making sound investment decisions. This report offers a balanced perspective to help investors navigate the complexities of gold and silver trading.

 

Disclaimer This report is for informational purposes only, based on data from reliable sources, and does not constitute investment advice. ISA BULLION makes no guarantees regarding the accuracy or completeness of the information provided and disclaims any liability for losses resulting from reliance on this report. Investors are encouraged to conduct their own research and consult professional advisors before making investment decisions. ISA BULLION, along with its directors, partners, officers, employees, and agents, explicitly disclaims responsibility for any direct or indirect loss or damage resulting from the use or reliance on the information herein.