ISA Bullion Gold Report – 26 July 2024

Market Insights

Today’s report delivers a thorough analysis of the gold and silver markets, emphasizing the fundamental and technical factors influencing current trends. Our goal is to provide investors with the insights required to navigate these markets effectively.

Fundamental Analysis

Gold price has managed to defend the key support near $2,360, consolidating weekly losses in Friday’s Asian session. Traders now shift their focus toward the monthly release of the US PCE Price Index after Thursday’s second-quarter GDP.

Gold:

• It will still be prudent to wait for some follow-through selling below the 61.8% Fibonacci level, around the $2,370 area, before positioning for deeper losses. The XAU/USD might then weaken further below the 50-day SMA, around the $2,350 region, and test the next relevant support near the $2,323-$2,300 region. On the flip side, any attempted recovery might now confront some resistance ahead of the $2,400 round-figure mark. Sustained strength beyond this level has the potential to lift the gold price back towards the $2,418 horizontal resistance en route to the $2,433-$2,450 region. The short-term Stochastics Oscillator is at 28, and the Relative Strength Index (RSI) is at 42.

Silver:

• Silver is under strong pressure as the gold/silver ratio rallied towards the 85 level. From the technical point of view, silver managed to settle below the previous support at $28.75 – $29.00 and moved towards the next support at $27.20 – $27.50. RSI remains in the moderate territory, so there is plenty of room to gain additional momentum if the right catalysts emerge. The short-term Stochastics Oscillator is at 14, and the Relative Strength Index (RSI) is at 29.