ISA Bullion Gold Report – 1 August 2024

Market Insights

This report offers a detailed examination of the gold and silver markets, highlighting key fundamental and technical factors that influence current trends. Our goal is to equip investors with the insights necessary to navigate these markets effectively.

Fundamental Analysis

Gold prices are consolidating July’s impressive gains as August begins, with buyers maintaining an advantage following the dovish Federal Reserve policy announcements. The ongoing geopolitical tensions in the Middle East between Iran and Israel further bolster gold’s appeal as a safe haven.

Gold:

• The uptrend remains strong, with aggressive buying seen once prices crossed above $2,400. If XAU/USD climbs past $2,450, the next resistance level would be the all-time high at $2,483, followed by the $2,500 mark. On the downside, if gold dips below $2,400, key support levels include the July 30 low of $2,376, the 50-day Simple Moving Average (SMA) at $2,359, and further support at the 100-day SMA at $2,331. The short-term Stochastics Oscillator is at 56, and the Relative Strength Index (RSI) is at 58.

Silver:

• Silver tested weekly highs as the gold/silver ratio fell below the 84.50 level. If silver manages to settle above the $29.00 resistance, it may target the next resistance range of $29.19 to $29.37. The short-term Stochastics Oscillator is at 35, and the Relative Strength Index (RSI) is at 45.