ISA Bullion Gold Report – 22 July 2024

Market Overview

Today’s report provides a comprehensive examination of 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 successfully.

Fundamental Analysis

Gold prices are attempting a rebound from $2,400, following a three-day corrective decline from record highs of $2,484. The recent pullback in gold prices is due to a broad-based weakness in the US Dollar and sluggish US Treasury bond yields, despite a risk-averse market sentiment.

Gold:

• Last week’s corrective slide from the all-time peak stalled near the $2,400 mark. A convincing break below this level could pave the way for deeper losses, dragging the gold price to the 61.8% Fibonacci level around the $2,366 region, en route to the $2,350 zone. Conversely, any subsequent move up is likely to confront resistance near the $2,425-$2,450 zone, above which short-covering could lift the gold price to the $2,468 region. The short-term Stochastics Oscillator is at 60, and the Relative Strength Index (RSI) is at 56.

Silver:

• Silver is losing ground as traders focus on the strong sell-off in gold markets. Currently, silver is trying to settle below the support at $28.75 – $29.00. If this attempt is successful, it will head towards the next support level at $27.20 – $27.50. The short-term Stochastics Oscillator is at 36, and the Relative Strength Index (RSI) is at 42.