Gold & Silver Market Analysis for Thursday 2nd of September

Kinesis Gold Analysis

The big rallying of gold seen in the last 15 days has found an obstacle with the key level of $1,820. Bullion is showing little volatility, while the price is still challenging this key resistance. In the current scenario gold has not yet found new fuel for continuing the recovery, even if the general set-up remains supportive. In other words, after the recent jump, the bullion price seems to have found a temporary equilibrium and new market drivers could be needed for further recoveries.

The list of elements which can trigger further rallies is quite various: first of all, any dovish statement from the Federal Reserve will most likely weaken the U.S. Dollar, pushing investors to increase their long positions on gold. Moreover, any corrections on stocks could cause a new jump on bullion price. On a separate note, geopolitical crises and any factor which can trigger a return to risk-off, could be another element supportive for the investment demand of the precious metal.

From a technical point of view, the first signal of weakness will arrive only with a decline of prices below $1,790. And vice versa gold could continue its lateral consolidation, seeking new market drivers surpassing the key level of $1,820.

Analyzing the macroeconomic calendar, we should also note that tomorrow afternoon there will be the release of the nonfarm payrolls. Any data below expectations could reduce pressure on the Federal Reserve for the beginning of tapering, while data above forecast can be seen as a confirmation of the start of tapering in Q4 2021.

Kinesis Silver Analysis

The volatility has slowed down also on the silver price, which is looking for new market drivers. Looking at the chart we should point out a crucial element: the graphical scenario is improving. 

Silver is holding steady above the resistance zone of $24, as investors’ interest seems to be increasing. A jump above $24,32 – 24,35 would open space for further recoveries. On the fundamental side, the physical demand for silver is expected to increase in the next few months, thanks to the growing demand from the industrial sector.

Carlo Alberto De Casa is Market Analyst for Kinesis.

He also writes as a technical analyst for the Italian newspaper La Stampa.

Carlo Alberto provides regular commentary for UK outlets including the BBC, Telegraph, the Independent Bloomberg & Reuters. He is also a commentator for CNBC Italy. He worked for Bloomberg as their Equity Research Fundamental Analyst before joining brokerage ActivTrades in 2011 to specialize in currency markets and commodities. In 2014 he published a book on gold and the gold market, followed by a new updated edition in 2018.

This report is not an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance.