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Daily Gold Market Analysis- 10 January 2025

10 January 2025
OTC Market Data
High
Low
Close
Previous
Change ZAR
Change %
Gold
53180
52780
53172
52913
+259
+0.49%

Daily Gold Market Analysis

Today’s report offers a comprehensive exploration of the gold market, providing key insights into the fundamental and technical factors shaping current trends. This analysis is designed to equip investors with the knowledge and tools needed to navigate these markets confidently and make informed decisions.

Fundamental Analysis

Gold prices extended their upward momentum for the fourth consecutive day on Friday, supported by fresh fund inflows. However, gains remain capped by the Federal Reserve’s hawkish stance, elevated US bond yields, and a strong US Dollar. Traders are exercising caution ahead of the highly anticipated US Nonfarm Payrolls (NFP) report due later today.

While the persistent strength in the US Dollar and Treasury bond yields presents headwinds, heightened safe-haven demand continues to underpin gold prices. Inflation concerns, fueled by the potential impact of incoming immigration and trade policies under US President-elect Donald Trump, have further bolstered gold’s appeal as an inflation hedge and a traditional safe-haven asset.

At the same time, expectations of fewer interest rate cuts by the Federal Reserve this year, coupled with economic concerns in China, keep the sentiment around the US Dollar strong. The Greenback hovers near weekly highs against major currencies, while benchmark 10-year US Treasury bond yields remain at eight-month highs above 4.68%, restricting the upside for the non-yielding gold price.

Markets remain risk-averse, with investors refraining from making strong directional bets on gold ahead of the NFP data, adding to the cautious mood surrounding the bright metal.

 

Gold Technical Analysis

Gold prices surpassed Wednesday’s overnight high near the $2,670 level, which had been acting as a key resistance, potentially signaling fresh bullish momentum. The 14-day Relative Strength Index (RSI) remains comfortably above the midline at 56, supporting the ongoing upward trend.

With daily chart oscillators turning positive, gold prices could aim for intermediate resistance around the $2,758 level, with the psychological $2,700 mark in sight.

On the downside, immediate support is expected at the 50-day Exponential Moving Average (EMA) near $2,641. A sustained break below this level could trigger further selling, exposing the 100-day EMA at $2,603, closely aligned with the $2,600 confluence zone.

Key Technical Indicators:

  • Stochastic Oscillator: 88 (overbought, signaling potential for consolidation or a pullback)
  • Relative Strength Index (RSI): 56 (bullish bias)

Support Levels:

  • $2,641 (50-day EMA)
  • $2,603 (100-day EMA)
  • $2,600 (key confluence zone)

Resistance Levels:

  • $2,700
  • $2,758

Gold’s trajectory remains positive, with further gains likely if prices hold above key support levels. However, overbought conditions on the Stochastic Oscillator suggest the possibility of short-term consolidation before the next move.

Support 3
Support 2
Support 1
Current Market Price
Resistance 1
Resistance 2
Resistance 3
51875
52300
52880
53214
53550
54075
54600

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
Average Hourly Earnings m/m
5:30pm
0.3%
0.3%
0.4%
Non-Farm Employment Change
5:30pm
256K
164K
227K
Unemployment Rate
5:30pm
4.1%
4.2%
4.2%
Prelim UoM Consumer Sentiment
7:00pm
73.2
74.0
74.0
Prelim UoM Inflation Expectations
7:00pm
3.3%
2.8%
2.8%

Conclusion

In the ever-changing and intricate bullion markets, staying updated through both technical and fundamental analysis is vital for making well-informed investment decisions. This report aims to provide a balanced perspective, empowering investors to confidently navigate the complexities of gold trading.

Disclaimer This report is provided for informational purposes only, based on data from reputable sources, but is not intended as investment advice. ISA BULLION (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 BULLION (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.