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Daily Gold Market Analysis- 7 January 2025

07 January 2025
OTC Market Data
High
Low
Close
Previous
Change ZAR
Change %
Gold
52380
51200
51810
52345
-535
-1.02%

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

Fundamental Analysis

Gold prices have moved past the critical short-term barrier of $2,635 early on Tuesday, consolidating the two-day corrective decline from the three-week high of $2,665. Traders are exercising caution, awaiting key US data releases, including the ISM Services PMI and JOLTS Job Openings. Speculation around Trump’s tariff plans, US jobs data, and overall market sentiment will also influence gold prices. Additionally, a speech by Richmond Federal Reserve President Thomas Barkin on the economic outlook may provide clues about the Fed’s next policy move.

Gold 

The daily chart shows the 14-day Relative Strength Index (RSI) near the 50 level, indicating that gold prices are fluctuating within a narrow range. Gold has moved past the 50-day Exponential Moving Average (EMA) at $2,636, but failed to maintain a daily close above it on Monday. Immediate support is seen at the 100-day Simple Moving Average (SMA) at $2,594, below which the price could drop to $2,566. The previous day’s low of $2,616 offers initial support to buyers. If gold buyers push the price above the three-week high of $2,666, the $2,700 level could challenge bearish sentiment. The Stochastic Oscillator is at 65, and the RSI is at 51.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
49986
50625
51193
51695
52163
52460
52750

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
ISM Services PMI
7:00pm
54.1
53.5
52.1
JOLTS Job Openings
7:00pm
8.10M
7.73M
7.74M

Conclusion

In the dynamic and ever-changing bullion markets, staying informed through both technical and fundamental analysis is key to making informed investment decisions. Our report aims to offer a balanced perspective, helping investors navigate the complexities of gold trading with confidence.

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.