Gold, Silver, Copper Analysis: In-depth Analysis Amid Rising Bullish Signs

Key Insights

• Gold faced a pullback as the US Dollar strengthened due to rising US Treasury yields and Federal Reserve policy expectations.
• Tensions between Israel and Hamas boost gold’s appeal as a safe-haven asset.
• Upcoming decisions from the Bank of Japan, Federal Reserve, and Bank of England will impact gold prices.
• Strong US economic performance and potential rate hikes bolster the dollar, affecting metals like silver and copper.
• Gold is expected to test the resistance at $2,011 soon, with its current price close to the $1,994 pivot point.
• Silver shows bullish signs above $23, potentially challenging the $23.44 resistance.

Quick Fundamental Outlook

Gold’s recent surge past $2,000 faced a pullback due to a strengthening US Dollar, driven by increasing US Treasury yields and expectations of the Federal Reserve’s policy tightening.

Although geopolitical tensions between Israel and Hamas are supporting gold as investors seek safe-haven assets, the US economy’s robust growth, reinforced by positive consumer spending and GDP reports, continues to challenge gold prices.

Upcoming policy decisions from central banks, including the Bank of Japan, Federal Reserve, and Bank of England, along with key data like China’s official PMIs and the US jobs report, are expected to influence gold’s trajectory.

This economic strength, paired with potential rate hikes, keeps the US Dollar strong, impacting other precious metals like silver and copper.

Gold Prices Forecast

Amidst global economic uncertainties, Gold (XAU/USD) retains its allure, manifesting a slight dip, currently priced at $1,996.95 — a 0.50% decrease. The pivot point stands firm at $1,994, marking a crucial threshold. Resistance levels are set at $2,011, $2,031, and $2,049, while immediate support hovers at $1,980, with additional cushions at $1,964 and $1,947. RSI data indicates a value of 59, suggesting a mild bullish sentiment.

The MACD line’s subtle lead over its signal line hints at potential upward momentum. Furthermore, the price comfortably exceeds the 50 EMA ($1,970), reinforcing a short-term bullish stance.

An observed upward channel pattern supports gold around the $1,990 range, underpinning its bullish trend above this level. Expectations lean toward gold testing the $2,011 resistance in imminent sessions.

Silver Prices Forecast

In the precious metals sphere, Silver (XAG/USD) has exhibited a shimmering performance, currently marked at $23.183 — a rise of 0.31%. The metal’s pivot point, set at $22.99, serves as a critical juncture for potential price movements.

If silver continues its upward spree, it might face resistance at $23.44, then $23.71, and finally, a more optimistic $24.12. Conversely, any declines might find an initial buffer at $22.65, followed by $22.25 and a solid base at $21.84.

The RSI suggests a value of 60, hinting at a mildly bullish sentiment. The MACD closely shadows its signal line, indicative of a potential bullish outlook. Notably, the price surpasses the 50 EMA, set at $22.87, solidifying its short-term bullish position.

An upward channel, coupled with a bullish engulfing candle, signals a buying trend around $22.85. Thus, if silver remains bullish above $23, we might soon see it challenge the $23.44 resistance.

Copper Prices Forecast

As October draws to a close, Copper paints a promising picture, trading at $3.71, marking an appreciable uptick of 1.31%. The metal’s pivot point, crucial for forecasting potential price fluctuations, stands at $3.67. Should copper’s bullish run persist, it could first confront resistance at $3.72, advancing to $3.76, and further on to $3.79.

Conversely, a downward shift may first find support at $3.60, descending further to $3.56 and possibly settling around $3.52. Technical indicators like the RSI sit at 73, signaling an overbought market, while the MACD suggests potential upward momentum, particularly given its recent crossover.

Furthermore, with the current price surpassing the 50 EMA at $3.63, short-term trends appear bullish. Notably, a symmetrical triangle’s bullish breakout indicates active buying, cementing the positive sentiment.

In essence, maintaining bullish momentum above $3.67 could soon see copper testing the $3.72 resistance.

For a look at all of today’s economic events, check out our economic calendar.