ISA Bullion Gold Report – 25 July 2024

Market Overview

Today’s report delivers an in-depth analysis of the gold and silver markets, emphasizing the fundamental and technical factors that drive current trends. Our objective is to provide investors with the insights required to navigate these markets effectively.

Fundamental Analysis

Gold prices witnessed a significant drop to nearly $2,365 in Asian trading after breaching the $2,400 threshold. Sellers are holding their ground, anticipating the advance US second-quarter Gross Domestic Product (GDP) data due later Thursday.

Gold:

• It’s prudent to wait for follow-through selling below the 61.8% Fibonacci level, around the $2,370 area, before positioning for deeper losses. If the XAU/USD weakens further below the 50-day Simple Moving Average (SMA), around the $2,350 region, it may test the next relevant support near the $2,323-$2,300 area. Conversely, any recovery attempt might face resistance ahead of the $2,400 round-figure mark. Sustained strength beyond this level has the potential to lift gold prices back towards the $2,418 horizontal resistance, en route to the $2,433-$2,450 region. The short-term Stochastics Oscillator is at 40, and the Relative Strength Index (RSI) is at 51.

Silver:

• Silver is losing ground as the gold/silver ratio moves towards the 83 level. The RSI remains in the moderate territory, indicating room for momentum gain in the near term. If silver declines below the support at $28.75 – $29.00, it will move towards the next support level, located in the $27.20 – $27.50 range. The short-term Stochastics Oscillator is at 18, and the Relative Strength Index (RSI) is at 36.