Gold, Silver, Copper Daily Forecast: Fed Signals Boost Metals; Correction Ahead?

Market Overview

Gold prices soared to unprecedented heights in the Asian market on Thursday, influenced by the U.S. Federal Reserve’s decision to maintain steady interest rates and hint at potential rate reductions within the year. The drop in the dollar post-Fed meeting spurred a significant upswing across the commodity sector, propelling copper towards 11-month peaks and elevating other precious metals.

Market participants now largely anticipate a rate cut by June, with a 73.4% probability. However, the Fed’s improved economic outlook for 2024 suggests a balanced perspective that might temper gold’s safe-haven appeal amidst a recovering U.S. economy.

Silver has also witnessed sharp increases, reflecting the broader momentum in precious metals. Meanwhile, copper’s rally gained momentum, with market focus shifting to upcoming purchasing managers index readings for further demand indicators.

Gold Prices Forecast

On March 21, Gold demonstrated resilience, rising by 0.78% to trade at $2203.02. The pivot point at $2208.94 emerges as a crucial marker for the asset’s trajectory. Resistance levels at $2216.11, $2225.52, and $2234.49 delineate the thresholds for further ascents.

Conversely, support levels at $2195.05, $2186.53, and $2176.45 offer floors for potential pullbacks. Technical indicators, including the Relative Strength Index (RSI) and the 50-Day and 200-Day Exponential Moving Averages at $2158.32 and $2099.73 respectively, hint at a nuanced outlook.

The current stance suggests a bearish trend below $2208.94, yet surpassing this pivot could signal a shift towards bullish momentum.

Silver Prices Forecast

Silver edged higher, increasing by 0.21% to a price of $25.63, as market participants weighed various economic indicators and market sentiments. The pivot point at $25.45 serves as a pivotal juncture for future price movements, with resistance levels observed at $25.78, $26.15, and $26.44.

These levels could cap further gains should the metal attempt to ascend. Support levels at $25.14, $24.78, and $24.52 provide a safety net against potential declines.

The 50-Day and 200-Day Exponential Moving Averages, at $24.79 and $23.80 respectively, suggest a bullish outlook for Silver as long as it maintains above the $25.45 mark. A move below this pivot point, however, could signal a shift to a bearish trend, necessitating a strategic reassessment for traders and investors.

Copper Prices Forecast

Copper’s price experienced an uptick of 0.42%, reaching $4.11466, reflecting positive momentum in the commodities market. The pivot point at $4.09 represents a critical threshold, with immediate resistance levels at $4.14, $4.17, and $4.21 poised to challenge upward movements.

Conversely, support levels at $4.04, $4.00, and $3.95 provide a foundational base, potentially arresting any declines. The 50-Day and 200-Day Exponential Moving Averages, at $4.04 and $3.92 respectively, underscore a bullish sentiment, as long as the price sustains above the $4.09 mark.

A dip below this pivot could indicate a bearish shift, necessitating caution among traders.

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