Gold, Silver Analysis

• Gold starts the week on the back foot with the US CPI the main focus
• Silver respects zone of resistance ahead of US CPI
• Gold market trading involves a thorough understanding of the fundamental factors that determine gold prices like demand and supply, as well as the effect of geopolitical tensions and war. Find out how to trade the safe haven metal by reading our comprehensive guide:

Gold volatility, measured by the Gold Volatility Index (GVZ) shot up ahead of last weekend but has eased lower to start the week. It could be argued that markets priced in a bit of caution as the Israel Defence Force advanced into Rafah, resulting in a late bid in precious metals.

30-day implied volatility revealed a lift higher and still remains relatively elevated. Current levels, however, fall some way short of the panic which ensued when US regional banks got into trouble back in March 2023.

Gold Volatility (GVZ) Chart