Daily Gold and Silver Market Analysis- 6 January 2025

06 January 2025
OTC Market Data
High
Low
Close
Previous
Change USD
Change %
Gold
2665
2636
2640
2657
-17.00
-0.64%
Silver
29.92
29.48
29.61
29.57
+0.04
+0.14%

Market Analysis Update

Today’s report offers a comprehensive examination of the gold and silver markets, highlighting the fundamental and technical factors influencing current trends. This analysis is designed to provide investors with the insights needed to make informed decisions and navigate these dynamic markets with confidence.

Fundamental Analysis

Gold edged lower for the second consecutive day on Monday, though the downside remains limited. The Federal Reserve’s hawkish stance continues to support elevated US Treasury bond yields, exerting pressure on gold prices. However, geopolitical risks and concerns over trade tensions are providing underlying support for the safe-haven XAU/USD.

Additionally, market participants remain cautious about the anticipated policies of US President-elect Donald Trump and the Federal Reserve, keeping gold prices resilient despite firm US bond yields. Meanwhile, the US Dollar (USD) reversed its earlier gains driven by strong ISM Manufacturing PMI data and is now trading in the red, offering a slight rebound for gold prices.


Gold Price Overview

Gold prices failed to sustain a modest uptick during Monday’s Asian session and are currently hovering around $2,635, marking the second straight day of decline.

Technical Indicators:

  • Relative Strength Index (RSI): Hovering near the 50 level, supporting a neutral-to-bullish outlook.
  • Stochastics Oscillator: Positioned at 58, suggesting moderate upward momentum.

Key Levels:

  • Resistance: Immediate resistance lies at the three-week high of $2,664. A break above this level could push prices toward the $2,700 mark.
  • Support: On the downside, gold prices are trading between the 50-day EMA at $2,638 and the 10-day EMA at $2,632. A sustained drop below these levels could expose the 100-day Simple Moving Average (SMA) at $2,592.
Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
2566
2592
2608
2634
2665
2700
2727

Silver Market Update

Silver holds steady as it inches closer to the critical $30.00 mark, while the gold-to-silver ratio remains below the psychologically significant 90.00 level. A continued decline in the ratio could pave the way for the next target range, positioned between $30.33 and $30.61.

Technical Indicators:

  • Stochastics Oscillator: 42, indicating moderate momentum.
  • Relative Strength Index (RSI): 44, reflecting a neutral-to-slightly bullish sentiment.

 

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
28.70
29.00
29.36
29.62
30.00
30.33
30.61

Indicator Definitions

  • Stochastics Oscillator: A momentum indicator that compares a closing price to its price range over a specified period. It identifies potential overbought conditions when readings exceed 80 and oversold conditions when they drop below 20.
  • Relative Strength Index (RSI): A tool that measures the magnitude of recent price changes to assess whether an asset is overbought or oversold. Values above 70 indicate overbought conditions, while readings below 30 suggest oversold conditions.
Key US Economic Reports & Events
When
Actual
Expected
Previous
Final Services PMI
6:45pm
56.8
58.5
58.5

Conclusion

Navigating the dynamic and ever-changing bullion markets requires a solid understanding of both technical and fundamental analysis. This report aims to deliver a well-rounded perspective, empowering investors to make informed decisions and effectively manage the complexities of gold and silver trading.

Disclaimer This report is for informational purposes only and is based on data from reputable sources. It is not intended to serve as investment advice. ISA BULLION does not guarantee the accuracy or completeness of this report and disclaims any liability for losses resulting from reliance on its contents. Readers are encouraged to conduct their own research and seek advice from professional advisors before making investment decisions. ISA BULLION, along with its directors, partners, officers, employees, and agents, expressly disclaims responsibility for any direct or indirect loss or damage arising from the use or reliance on the information provided herein.