ISA Bullion Gold Report – 2 August 2024

Market Overview

Today’s report provides a comprehensive examination of the gold and silver markets, focusing on fundamental and technical factors that drive current trends. Our objective is to equip investors with the insights necessary to navigate these markets successfully.

Fundamental Analysis

The gold price is gathering momentum to continue its recent upside early Friday, following a relatively flat close on Thursday. The price needs to secure a position above the $2,450 barrier, with its next direction heavily dependent on the upcoming US Nonfarm Payrolls data release.

Gold:

• The gold price uptrend remains intact, but buyers face significant resistance near weekly highs, which could lead to a pullback. Buying momentum has faded, as shown by the Relative Strength Index (RSI), which is trending lower, suggesting the possibility of a correction. If XAU/USD falls below $2,446, it may experience a further drop to $2,400. Additional downside is possible if traders break below the 50-day Simple Moving Average (SMA) at $2,362, followed by the 100-day SMA at $2,334. Conversely, if XAU/USD stabilizes above the daily high at $2,468, it may target the all-time high (ATH) at $2,484, followed by the psychological $2,500 level. The short-term Stochastics Oscillator is at 77, and the Relative Strength Index is at 63.

Silver:

• Silver is losing ground as the gold/silver ratio rebounds toward the 86 level. Silver remains volatile due to significant swings in the gold/silver ratio. A move below the $28.88 level will push silver towards support at $28.73 – $28.60. The short-term Stochastics Oscillator is at 38, and the Relative Strength Index (RSI) is at 46.