1 Oz Krugerrand
Selling
R
|
Buying
R

Daily Gold Market Analysis- 13 January 2025

13 January 2025
OTC Market Data
High
Low
Close
Previous
Change ZAR
Change %
Gold
54177
53137
54066
53222
+844
1.58%

Today’s analysis offers a comprehensive overview of the gold markets, highlighting the fundamental and technical factors shaping current trends. Our report is designed to empower investors with the insights necessary to navigate these markets successfully.

Fundamental Analysis

Gold prices began the week on a softer note, retreating from a one-month high set on Friday. Factors such as hawkish expectations from the Federal Reserve, rising U.S. bond yields, and a strong U.S. dollar are weighing on the precious metal. However, the prevailing risk-off sentiment may provide support for the safe-haven XAU/USD pair, helping to limit further losses.

Markets remain cautious about potential trade policies from U.S. President-elect Donald Trump and their implications for inflation and the economy, enhancing gold’s appeal as a safe haven. Additionally, the recent surge in WTI oil prices raises inflationary concerns in the Trump 2.0 era, further supporting gold as an inflation hedge. Oil prices soared on Friday following the U.S. Treasury’s broader sanctions on Russian oil supplies, which are expected to impact crude exports to major buyers like China and India.

The Labor Department’s NFP report indicated that the U.S. economy added 256,000 jobs in December, surpassing November’s 227,000 and the anticipated 160,000. The unemployment rate unexpectedly dropped to 4.1%, compared to a steady forecast of 4.2%.

Gold

The daily chart reveals that, despite some profit-taking, gold buyers remained strong on Friday, extending the breakout from a symmetrical triangle pattern. Gold confirmed an upside break from this month-long formation on January 8, reinforcing the ongoing bullish momentum. The 10, 50, and 100-day Exponential Moving Averages are aligned, and the 14-day Relative Strength Index is comfortably above the midline, suggesting further upward potential for gold prices. Currently, the Stochastic Oscillator is at 89, while the Relative Strength Index is at 60.

The gold market is at a crucial juncture, with key support and resistance levels indicating potential future movements:

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
52883
53214
53550
54108
54600
55125
55650

Indicator Definitions

  • Stochastic Oscillator: Measures momentum by comparing a closing price to its price range over a set period. Values above 80 signal overbought conditions, while values below 20 indicate oversold conditions.
  • Relative Strength Index (RSI): Assesses price changes to determine overbought or oversold levels. A reading above 70 suggests overbought conditions, while below 30 points to oversold conditions.
Key US Economic Reports & Events
When
Actual
Expected
Previous
No Important Data

Conclusion

In the intricate and constantly changing bullion markets, staying informed through both technical and fundamental analysis is essential for making sound investment decisions. Our report aims to offer a balanced perspective to help investors navigate the complexities of gold trading effectively.

Disclaimer: This report is provided for informational purposes only, based on data from reputable sources, but is not intended as investment advice. ISA GOLD (Pty) Ltd makes no guarantees as to the report's accuracy or completeness and disclaims any liability for losses that may arise from reliance on this information. Users are advised to conduct their own research and consult with professional advisors before making investment decisions. ISA GOLD (Pty) Ltd, along with any associated directors, partners, officers, employees, or agents, expressly disclaims any responsibility for any direct or indirect loss or damage arising from the use or reliance on the information provided herein.