Gold, Silver, Copper Analysis: Spot Analysis Reveals Bearish Momentum for XAU/USD and XAG/USD

Key Insights

• Geopolitical tensions, specifically the Hamas-Israel conflict, prompt gold price fluctuations.
• The U.S. advocates for humanitarian aid and hostage release in Gaza, impacting global market sentiments.
• Gold remains stable despite airstrikes; market eyes Federal Reserve’s interest rate decisions.
• Q3 GDP data and September’s inflation metric will be pivotal for the Federal Reserve’s stance.
• Technical indicators hint at bearish momentum for gold, despite recent bullish trends.

Quick Fundamental Outlook

Gold prices see a decline, nearing Monday’s levels due to the ongoing Israel-Palestine conflict. As the U.S. emphasizes a delay in Israel’s ground assault in Gaza and prioritizes humanitarian aid and hostage release, investors are keenly waiting for significant economic indicators that will influence the Federal Reserve’s stance on interest rates.

Despite the dip, gold’s value remains generally supported due to continued Israeli airstrikes in Gaza, resulting in substantial casualties. Concurrently, expectations of the Fed halting interest rate hikes have led to a decrease in long-term bond yields and the U.S. Dollar. Upcoming attention will be on the GDP data for Q3 and the Fed’s favored inflation metric for September.

Gold Prices Forecast

Gold (XAU/USD), historically a safe-haven asset, exhibited a slight downtrend on October 24, with its price registering at $1960.825, marking a decrease of 0.58%. The 4-hour chart reveals significant price levels that traders should be cognizant of.

With a pivot point at $1966, the immediate resistance stands at $1984, followed by sterner tests at $1998 and $2020. Conversely, the metal finds support at $1947, with subsequent cushions at $1932 and $1911.

Technical indicators provide further insights. The RSI, valued at 49, hovers just below the neutral mark, leaning slightly bearish. The MACD, with a value of -3.9010, is below its signal line at 8.9780, hinting at potential bearish momentum.

Interestingly, Gold’s price surpasses its 50-day EMA, positioned at $1942, suggesting a recent bullish trend. However, chart patterns indicate an upward channel breakout at $1966 and a tweezers top pattern on the 4-hour chart, signaling selling pressure.

In conclusion, Gold portrays a bearish sentiment below $1966, with potential challenges to the upside.

Silver Prices Forecast

Silver (XAG/USD), the precious metal often shadowed by gold, is currently witnessing a downward pressure, priced at $22.72, reflecting a decline of 0.96%. Within a 4-hour chart timeframe, several vital price markers emerge. The pivot point resides at $22.81, paving the way to resistances at $23.23, $23.69, and a more formidable one at $24.11.

On the other hand, Silver finds its immediate safety net at $22.39, with deeper supports stationed at $21.83 and $21.29. From the technical indicators’ perspective, the RSI stands at 41, indicating a bearish momentum as it’s below the 50 mark. The MACD, at -0.07, is beneath its signal value of 0.035, further supporting a bearish sentiment.

Interestingly, Silver’s current price is slightly below its 50-day EMA of $22.78. Chart patterns showcase an upward channel breakout at $23, but a bearish engulfing candle on the 4-hour chart suggests potential selling pressure.

In summation, Silver’s trajectory appears bearish, especially if it remains south of $22.85. Immediate challenges may come into play near the $23.23 resistance.

Copper Prices Forecast

Copper, the bellwether for global economic health, currently sits at $3.59361, having retreated by 0.56% within the last 24 hours. A glance at the 4-hour chart reveals a few instrumental levels: a pivot point at $3.62, followed by resistances at $3.66, $3.69, and a steeper ascent to $3.74. Should Copper face headwinds, the metal will find support at $3.56, with further cushions at $3.52 and $3.48.

The RSI, positioned at 48, leans towards a bearish sentiment. The MACD value of 0.00369 is above its signal line (0.00049), suggesting potential upward momentum, providing a counter-narrative to the bearish RSI. The price of Copper hovers just below its 50-day EMA of $3.60, reinforcing the bearish sentiment.

In conclusion, the technical landscape suggests a bearish inclination for Copper, especially if it remains below the $3.62 level. The immediate challenge may arise near the $3.66 resistance in the forthcoming sessions.

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