Daily Gold Market Report

Gold’s Resilience Tested:
Technical Indicators Suggest Uptrend May Hold Despite Recent Losses

(USAGOLD – 4/25/2024) Gold prices are slightly positive in early US trading. The gold market has struggled to gain upward momentum despite a lackluster start to the year for the U.S. economy. Gold is trading at $2320.25, up $4.08. Silver is trading at $27.27, up 11 cents. Gold experienced its worst daily decline in nearly two years on April 22, 2024, with a drop of -2.7%, and continued to fall in the following session, accumulating a loss of -5.8% from its all-time high on April 12 to an intraday low of US$2,291. Despite this significant drop, several factors suggest the medium-term uptrend that began in mid-February 2024 may still be intact. The Gold/Copper ratio, which measures gold’s performance relative to copper and indicates economic growth trends, remains supported within a rising trend channel, suggesting continued demand for gold as a hedge against stagflation risk. Additionally, Gold’s price is still above its 50-day moving average, which aligns with a key medium-term support zone. The daily RSI momentum indicator also remains above a critical support level, indicating the uptrend’s resilience. If Gold breaks above US$2,420, it could target US$2,540, while a fall below US$2,210 could lead to a test of the long-term pivotal support zone at US$2,075/2,035, which coincides with the 200-day moving average.