Gold & Silver Market Analysis for Monday 26th of July

Carlo Alberto De Casa

26/07/2021

Kinesis Gold Analysis

The gold price has started the new week in green, gaining around ten dollars and recovering above $1,810.

Overall volatility remains moderate on gold, with the price continuing its slow dance around the $1,800 mark. Bullion is still in a consolidation phase, within the lateral channel between $1,790 and $1,820, but the momentum seems to improve, and a clear surpass of $1,820 could generate new rallies. Indeed, in the last few hours, a modest decline of the US Dollar was enough for gold to recover more than 0.5%.

Gold price above $58 per gram - from Kinesis exchange (26.07.2021)

Gold Price holding strong above $58 per gram – Kinesis Exchange

Despite this slight correction, the greenback remains strong, with the Dollar index above 92.7, less than 0.5% below its 3-month-high.

Investors eyes’ are now focusing on the Federal Open Market Committee (FOMC) meeting, scheduled for this week, as they await further discovery about the timing and the modality of stimulus tapering. Any dovish news coming from Jerome Powell and his team would be seen as positive for the bullion price.

Kinesis Silver Analysis

Silver is coming from three weeks in a row in red, for the first time since last February. The total loss of this bearish phase is just above 5%, with a decline from $26,5 (closing of the 2nd of July 2021) to the $25,23 seen last Friday.

The new week has started with the price recovering almost 1% and jumping to $25,45. From a technical point of view, the short-term picture worsened significantly in the last ten days, as the price has fallen below the support zone of $26.

In the last two trading sessions, we have seen silver regaining momentum, as the price is trying to rebound. The scenario will continue to improve if prices could surpass the first resistance zone placed at $25,55/25,6, but we will have a strong positive signal only with a return above the former support – now resistance – placed at $26. A clear surpass of this zone would put back silver in the range of $26 – 26,5 seen in the middle of July.

From a fundamental point of view, the medium-long term scenario, appears much more interesting, with growing demand for the precious metal coming from many sectors, including electric cars and photovoltaic.

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.

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