Gold, Silver, Copper Daily Forecast: XAU Eyes $2200 Ahead of Fed Insights

By:

Arslan Ali

Updated: Mar 28, 2024, 06:40 GMT+00:00

Key Points:

Gold's resilience near peak levels anticipates pivotal U.S. PCE data, Fed insights.
Copper's rebound on Chinese output cut talks underscores market supply dynamics.
Anticipation of Fed's rate decisions, amid global tensions, crucial for metals' outlook.

In this article:

Gold

-0.68%

Silver

-0.96%

Copper

+0.51%

Market Overview

In Thursday’s Asian trading session, gold prices hovered near their peak, influenced by the market’s anticipation of U.S. inflation data and potential interest rate adjustments. The spotlight now turns to the upcoming Personal Consumption Expenditures (PCE) Price Index data, with the market poised for reactions that could catalyze movements across metal markets.

Additionally, forthcoming remarks from Federal Reserve Chair Jerome Powell and FOMC member Mary Daly are eagerly awaited, following a series of hawkish comments from other Fed officials, including Governor Christopher Waller’s caution against premature rate cuts.

Copper prices experienced a resurgence, approaching 11-month highs amidst discussions of production cuts by Chinese smelters, signaling a potential tightening in copper markets.

However, persistent robust Chinese copper inventories suggest market conditions may not be as constrained as initially anticipated.

Gold Prices Forecast

Gold – Chart

Gold (XAU/USD) nudged slightly higher by 0.04%, settling at $2195.5, displaying a cautious optimism among traders. The precious metal hovers near its pivot point of $2184.13, suggesting potential for an uptrend should it maintain above this threshold. Resistance levels are marked at $2200.33, $2222.70, and $2243.74, posing challenges for further upward movements.

Conversely, support at $2161.72 followed by $2145.54 and $2124.85, offers cushions against declines. The symmetrical triangle pattern observed signals a neutral stance, yet the positioning above the 50-day EMA of $2173.83 and well beyond the 200-day EMA of $2120.57 leans towards a bullish sentiment.

Silver Prices Forecast

Silver – Chart

Silver (XAG/USD) shows a modest uptick, increasing by 0.17% to a price of $24.69, signaling a positive market sentiment. The precious metal currently hovers above the pivot point of $24.54, indicating a bullish outlook if it remains above this mark.

Resistance levels are set at $24.97, $25.34, and $25.78, delineating potential ceilings for price advancements. Conversely, support at $24.10, followed by $23.84 and $23.60, could provide a safety net against declines.

The alignment of the 50-day Exponential Moving Average (EMA) at $24.69 and a significant 200-day EMA at $24.03 supports the potential for continued bullish momentum, especially if prices stay above the critical $24.50 threshold.

Copper Prices Forecast

Copper – Chart

Copper‘s recent trading session observed a gain of 0.41%, reaching $4.04, hinting at a bullish sentiment above its pivot point of $4.04. The immediate resistance levels are set at $4.09, $4.13, and $4.17, indicating potential hurdles for price advancement.

Conversely, support levels at $3.96, $3.91, and $3.87 provide a safety net against declines. Technical indicators, including a Relative Strength Index (RSI) and the positioning of the 50-day and 200-day Exponential Moving Averages (EMAs) at $4.03 and $3.95 respectively, support a bullish trend.

A sustained move above $4.04 could further drive buying interest, while a drop below this threshold may trigger a sell-off.

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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