FX.co ★ Retired-Mogambo | XAU/USD, GOLD

According to the statistics as of June 29, the fundamental outlook for the gold and silver markets has been supported by central banks' consistent purchases of the two metals over time as well as the slow growth rate of new mine supplies. The gold and silver markets now have a solid base thanks to central bank intervention, regardless of what might happen with individual investors and speculative funds at particular times. Due to mature deposits and growing development costs, new production from gold mines has, at most, shown little expansion in recent periods. Additionally, the growth rate of silver production has been sluggish, with some mines anticipating modest increases in output in the upcoming years. Strong demand for industrial fabrication has also bolstered the market for silver, while the energy sector has seen a steep increase in demand due to the growing significance of solar panels for energy production, as well as an increase in demand for electrical and electronics equipment and electric vehicles. Institutional investment demand via exchange-traded funds is another aspect of silver demand. Demand for investments has also included demand for gold. Gold Spot is currently trading on the 4-hour chart at $4,049. Following a sharp decline from a swing high of $4,291, green bounce candles are holding the 0.236 Fibonacci retracement close to $4,023. While the RSI is still close to 48, green rebound candles are rising from a $3,962 swing low to indicate buyer absorption. According to the volume profile, there may be a fair value opportunity in the $4,023 to $4,091 range. Resistance is being provided by the $4,221 red 50ma. Within a broader decline from a swing high of $4,597, the market is neutral to positive from $4,023. A bottom in gold spot from higher lows is being supported by the Fibonacci confluence.