ISA Bullion Gold Report – 29 November 2024

Introduction

Staying updated on gold trading trends is vital for informed decision-making. This report highlights key price drivers, focusing on gold’s recovery over the past two days, fueled by a weaker US Dollar and declining Treasury bond yields. Reduced geopolitical tensions between Israel and Lebanon also contributed to market stability, while the appointment of Scott Bessent as Treasury Secretary bolstered confidence in US fiscal policy. However, the Federal Reserve’s divided stance on future rate cuts adds an element of uncertainty to the market outlook.

Fundamental Analysis

Gold

Gold buyers are gradually regaining momentum, as evidenced by the 14-day Relative Strength Index (RSI) briefly reclaiming the 50 level. However, the ongoing Bear Cross casts doubt on the sustainability of the bullish trend. A decisive break above $2,684 could pave the way for further gains, targeting $2,700 and potentially $2,731.

On the downside, immediate support lies at the weekly low of $2,600, with a breach likely triggering a decline toward the 100-day SMA at $2,572. The Stochastics Oscillator currently reads 59, while the Relative Strength Index (RSI) is at 51.

Silver

Silver briefly dipped below the critical $30.00 mark during intraday trading but rebounded strongly to close higher. The gold/silver ratio remains steady, fluctuating between 86.00 and 87.00. If silver holds above the $30.00 support level, it can move toward the $31.08–$31.89 range. The short-term Stochastics Oscillator stands at 36, while the Relative Strength Index (RSI) is at 46.