Weekly Gold Price Technical Analysis: Gold and Silver Continues ‘Strong Buy’ recommendation

Gold and silver have had a notably positive week, reflecting growth in various sectors. However, upon closer examination of US economic indicators, it becomes apparent that growth in retail and manufacturing is weak or even negative.

Industrial production saw a decline of over 0.5%, while the Philadelphia FED manufacturing index plunged to -13.5%. Additionally, the US leading economic indicators is predicted to fall 0.6%.

Despite these indicators, the US500 continues to surge, entering its fifth consecutive month of gains. Nevertheless, the strong confidence in the US stock market has raised concerns among economists, with many suggesting that the US500 may be overbought, leading to potential pullbacks in the near future.

Meanwhile, in Australia, the Reserve Bank of Australia (RBA) is undergoing a leadership change with the departure of Phillip Lowe and the appointment of Michele Bullock as the new governor. Amidst one of Australia's most aggressive tightening periods in history, rumours have surfaced that Michele Bullock is poised to initiate a process of unwinding monetary tightening, potentially paving the way for interest rate reductions in the near future. This move aligns with the historical pattern, as tightening periods typically do not last longer than 18 months, yet their economic effects may persist for years.

As Australia anticipates a shift towards more mortgage-friendly interest rates and increased disposable income, the central question remains whether inflation is genuinely under control. This concern will undoubtedly be at the forefront of economic discussions in the coming months as policymakers navigate the complexities of managing economic growth and stability.

Here’s today’s charts and market forecast below.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

Gold Technical Analysis

Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis of a NEUTRAL signal.

Technical indicators - Monthly Projections

Summary for Monthly Forecast: Strong Buy

Disclaimer

This news and any links provided are for general information only and should not be taken as constituting professional advice from Jaggards. Jaggards is not a financial adviser. We recommend you seek independent financial advice before making any financial decisions based on the information contained in this article.