Gold, Silver, Copper Daily Forecast: Copper Surges Over 1% Amid Chinese Market Support Hopes

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Published: Jan 23, 2024, 12:52 GMT+00:00

Copper takes the lead, jumping 1.15% on Chinese economic stimulus rumors, while gold and silver react cautiously to global market dynamics.

In this article:

Gold

-0.68%

Silver

-0.96%

Copper

+0.51%

Key Insights

Gold prices edge up to $2,025, spurred by weaker dollar and Middle East tensions, yet dampened by Fed rate stance.
Copper rallies nearly 1% on China support hopes; U.S. GDP and inflation data to guide future Fed rate policies.
Silver shows modest gain, trading bearish below pivot point; copper faces resistance, hinting at potential trend reversal.

Quick Fundamental Outlook

On Tuesday, Copper prices surged nearly 1% amid expectations of Chinese government measures to bolster local markets, considering China’s significant role as the world’s largest copper importer. The focus now shifts to upcoming U.S. economic data, including fourth-quarter GDP and PCE price index, which could affect the Fed’s rate decisions.

Meanwhile, gold prices saw a slight rise to $2,025 per ounce, influenced by a slightly weaker dollar and geopolitical tensions in the Middle East, fostering safe-haven demand. The anticipation of the Federal Reserve maintaining higher interest rates dampened significant gains.

This data, highlighting U.S. economic resilience and inflation trends, may impact gold and copper prices by influencing the Federal Reserve’s interest rate policies.

Gold Prices Forecast

Gold – Chart

On January 23, gold’s price exhibits a marginal increase, currently trading at $2,024.565, up 0.26%. The 4-hour chart reveals pivotal levels: the pivot point at $2,031.764 and a string of resistance points, the nearest at $2,040.017, followed by $2,050.908 and $2,065.543.

Immediate support lies at $2,016.488, with further cushions at $2,002.002 and $1,986.548. A notable observation is gold’s recent dip below both the 50 EMA ($2,028.841) and the 200 EMA ($2,028.559), indicating potential bearish momentum.

This breach suggests a shift in market sentiment, with the likelihood of gold targeting the immediate support level of $2,016. The overall trend appears bearish below the $2,031.764 pivot point, hinting at a cautious short-term outlook for the precious metal.

Silver Prices Forecast

Silver – Chart

On January 23, silver experienced a modest uptick, trading at $22.24350 with a 0.74% increase. Key technical levels are in focus: the pivot point stands at $22.50784, while immediate resistance is mapped at $22.95658, escalating to further levels at $23.36204 and $23.72968.

On the downside, immediate support is observed at $21.98502, followed by $21.59303 and $21.31028. Notably, silver is currently trading below both the 50 EMA ($22.67939) and the 200 EMA ($23.24867), indicating bearish sentiment.

The chart reveals a descending triangle breakout at the pivot point of $22.50784, suggesting a prevailing selling trend. This pattern underpins a bearish outlook for silver, especially if it remains below $22.50784.

Copper Prices Forecast

Copper – Chart

On January 23, copper price saw a notable increase, climbing 1.15% to $3.79865. The metal’s current stance is defined by key technical levels, with a pivotal point at $3.81435. Resistance is set at $3.83422, escalating to $3.86681 and $3.89676. Conversely, immediate support lies at $3.75873, with further levels at $3.72859 and $3.70010.

Copper is trading near the 50 EMA ($3.78790) and just below the 200 EMA ($3.81426), indicating a critical juncture. The chart shows a downward trendline extending resistance at $3.81435, suggesting that a close below this level may hinder the uptrend. However, a break above could trigger a sharp buying interest.

Currently, the trend appears bearish below $3.81435, with the short-term outlook suggesting copper may test these resistance levels, potentially defining its next directional move.

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

About the Author

Arslan Aliauthor

Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.

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