Gold, Silver, Copper Analysis: XAU/USD and XAG/USD Shine Amid Geopolitical Upheavals

Key Insights

• Gold price surge tied to geopolitical tensions, notably Hamas-Israel conflict.
• Rising Treasury yields, paradoxically, are now supporting gold prices.
• Federal Reserve’s anticipated policy moves pushing gold to new peaks.
• Silver displays a bullish trend, maintaining its stance above $22.85.
• Copper’s bullish bias holds strong above the $3.50 price mark.

Quick Fundamental Outlook

Geopolitical tensions, particularly Hamas’ attack on Israel, prompted a surge in gold prices as traders sought safe-haven assets, pushing gold near the $2,000 mark. Concerns about potential disruptions to oil supplies and trade routes due to escalating conflicts also fueled this rush.

Recent indications of Israel’s readiness for ground operations against Hamas further buoyed gold’s appeal. Despite typically being dampened by rising Treasury yields, gold is now paradoxically benefiting.

The anticipation of the Federal Reserve hiking rates and maintaining them, coupled with falling U.S. government bond prices driven by factors like the Fed’s policy and China’s reduced purchases amidst rising geopolitical tensions, has channeled investments into gold, sending its prices to new peaks.

Gold Prices Forecast

Gold (XAU/USD), in the 4-hour chart timeframe, registered a subtle decline of -0.02%, trading at $1981.025. The precious metal’s pivot point stands at $1965. It faces immediate resistance at $1998, with subsequent ceilings set at $2020 and $2040. On the flip side, gold has immediate support at $1939, followed by stronger holds at $1921 and $1901.

Technically, the Relative Strength Index (RSI) is at 68, teetering close to overbought territory but still indicating a bullish sentiment as it remains above 50.  The 50-day Exponential Moving Average (EMA) stands at $1934, underlining that the price is hovering above it, denoting a short-term bullish trend.

In conclusion, the overall trend for gold is bullish as long as it sustains above the $1965 mark. Traders should keep a close watch on the aforementioned resistance levels in the coming sessions.

Silver Prices Forecast

Silver (XAG/USD)‘s performance in the 4-hour chart has seen a slight retracement, with the metal declining by 0.24% to stand at $23.21. Strategically, the pivot point for silver is at $22.83. Key resistances are mapped out at $23.52, followed by $24.00 and $24.50. On the downside, silver finds immediate support at $22.39 with subsequent buffers at $21.84 and $21.32.

The Relative Strength Index (RSI) for silver is at 58, suggesting a moderately bullish sentiment as it is positioned above the 50 mark. The MACD, on the other hand, indicates potential uncertainty. With a value of -0.0190 and its signal line at 0.1640, the momentum isn’t convincingly bullish. The 50-day Exponential Moving Average (EMA) is pegged at $22.73, emphasizing that the current price is trading above it, indicating a short-term bullish stance.

In conclusion, silver’s trajectory appears bullish as long as it remains above the $22.85 mark. Investors should monitor the outlined resistance levels for potential breakouts in the near term.

Copper Prices Forecast

Copper exhibited a modest ascent, gaining 0.30% over 24 hours to trade at $3.57042 on the 4-hour chart. The metal’s pivotal juncture is identified at $3.61. It faces resistance at $3.66, progressing to $3.69 and a stronger ceiling at $3.74. Should a downturn occur, initial support is found at $3.56, with subsequent cushions at $3.52 and $3.48.

The Relative Strength Index (RSI) for copper stands at 40, indicating a somewhat bearish sentiment as it currently hovers below the mid-line of 50. Notably, the 50-day Exponential Moving Average (EMA) is at $3.60, underscoring the asset’s current position below it, reflecting a short-term bearish perspective.

Conclusively, the bias for copper remains bullish as long as it maintains above the $3.50 level. A near-term outlook suggests eyes should be on the resistance levels, particularly $3.66, for potential price action.

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