Gold, Silver, Copper Daily Forecast: Metals in Focus Ahead of US Inflation Data

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Updated: Jan 11, 2024, 13:21 GMT+00:00

Traders eagerly await U.S. inflation data's impact on gold, silver, and copper prices as the Fed's rate strategy hangs in the balance.

In this article:

Gold

-0.68%

Silver

-0.96%

Copper

+0.51%

Key Insights

Traders await December’s U.S. inflation figures, with expectations of a 3.2% year-on-year CPI increase.
New York Fed President John Williams emphasizes caution, countering early rate cut hopes, which may impact commodities like gold, silver, and copper, sensitive to interest rate changes.
Gold at $2,032, a 0.40% increase, faces resistance at $2,049 and support at $2,017.

Quick Fundamental Outlook

Traders are keenly anticipating December’s U.S. inflation data, which is pivotal for the Federal Reserve’s interest rate strategy in 2024. The expected uptick in the year-on-year consumer price index (CPI) to 3.2%, and the projected slowdown in the core measure to 3.8%, are crucial indicators.

Fed officials, like New York Fed President John Williams, emphasize that it’s premature to consider rate cuts due to persistent inflation.

This cautious stance, countering previous market optimism for early rate reductions, could influence financial markets. Specifically, this scenario may impact commodities like gold, silver, and copper, as their prices often react to changes in interest rate expectations and economic outlooks.

Gold Prices Forecast

Gold – Chart

Gold’s price stands at $2,032, marking a 0.40% increase over the past 24 hours. When examining key price levels, the pivot point rests at $2,039.

Immediate resistance is seen at $2,049, followed by further resistances at $2,064 and $2,078. On the flip side, immediate support is located at $2,017, with subsequent support levels at $1,999 and $1,979.

A downward channel is observed, suggesting potential bearish pressure with resistance near $2,039. Conclusively, the overall trend for gold appears bearish below the $2,039 mark.

Silver Prices Forecast

Silver – Chart

Silver currently trades at $23.02550, marking a modest 0.57% increase. The day’s pivot point is established at $23.24, with resistance levels set at $23.51, $24.09, and $24.49. On the support side, key levels are positioned at $22.69, $22.31, and $21.96.

The Relative Strength Index (RSI) for silver, standing at 48, leans towards a neutral to slightly bearish outlook, as it falls below the bullish-indicative 50 threshold. Chart observations on a four-hour scale suggest silver is receiving support near $22.69, aided by an upward trendline.

Yet, the 50-day EMA at $23.24 could act as a significant obstacle, with silver facing difficulty in maintaining a stance above $23.25, potentially leading to selling pressure under this mark. The overall trend for silver is trending towards bearish below the $23.25 level.

Copper Prices Forecast

Copper – Chart

Copper trades at $3.81640, up by 0.40%, with a pivotal point at $3.83. Resistance levels are set at $3.88, $3.93, and $3.98, while support lies at $3.77, $3.73, and $3.70.The Relative Strength Index (RSI) at 49 indicates a slightly bearish sentiment. The 50-Day Exponential Moving Average (EMA) at $3.81 aligns with the current price, signifying a balanced market without a clear short-term trend.

On the four-hour chart, copper breaks its upward trendline at $3.85, signaling a shift to a downward trend. Below this level, a selling bias may dominate.

In summary, copper’s current trend is bearish below $3.85, with short-term expectations centered on testing resistance, particularly at $3.85, which will influence its near-term direction.

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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