ISA Bullion Gold Report – 19 July 2024

Market Insights

Today’s analysis provides a comprehensive look at the gold and silver markets, highlighting the fundamental and technical factors driving current trends. Our objective is to equip investors with the insights necessary to navigate these markets effectively.

Fundamental Analysis

Gold prices are experiencing a three-day corrective decline from record highs of $2,484, paring back weekly gains amid a solid rebound staged by the US Dollar alongside the US Treasury bond yields.

Gold:

• The gold price is pulling back, hinting that traders are booking profits after rallying more than 8% during the last three weeks. Momentum remains bullish in the mid-term, but the Relative Strength Index (RSI) is aiming lower, indicating that buyers are taking a respite before lifting the precious metal to higher prices. In the short term, if XAU/USD closes below $2,450 this week, it could pave the way to challenge $2,400. Conversely, conquering $2,468 could lead to a new all-time high of $2,500. The short-term Stochastics Oscillator is at 73, and the Relative Strength Index (RSI) is at 57.

Silver:

• Silver is pulling back as the gold/silver ratio tests new highs, currently attempting to settle above the 82 level. If silver closes below the $30.00 level, it will move towards the nearest support at $29.00 – $28.00. The short-term Stochastics Oscillator is at 39, and the Relative Strength Index (RSI) is at 43.