Gold, Silver, Copper Daily Forecast: Metals on the Rise; Dovish Fed Sentiment and Middle East Tensions In Play

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Published: Jan 24, 2024, 13:58 GMT+00:00

Amidst Fed rate cut speculations and Middle East tensions, gold's stable rise, silver's pivot point breakthrough, and copper's bullish breakout shine.

Gold’s steady uptrend amidst revised Fed rate cut speculations and Middle East unrest supports prices.
Silver sees a 1.28% rise, navigating crucial pivot point, indicating a potential upward trend shift.
Copper climbs 1.89%, breaking key trendline resistance, signaling a bullish market above pivot point.

Gold Prices Steady Amid Fed Rate Cut Speculations and Middle East Tensions

Gold prices show a modest uptick in the early European session, maintaining a positive stance for the second consecutive day. However, the momentum is limited, with prices staying below the $2,040 mark. The market’s revised expectations of a Federal Reserve interest rate cut, now anticipated in May rather than March, coupled with a strong equity market, poses challenges for gold.

Despite this, tensions in the Middle East and global economic uncertainties support gold’s safe-haven appeal. Meanwhile, the US Dollar remains subdued due to steady Treasury yields, benefiting commodities like gold, silver, and copper.

Investors are cautious, awaiting key US economic data releases, including the Q4 GDP on Thursday and Core PCE Price Index on Friday, for clearer market direction.

Gold Prices Forecast

Gold – Chart

Gold’s market performance remains steady, trading at $2030.31, a slight increase of 0.06%. Its technical framework is centered around a pivot point at $2,034.02. Looking upwards, gold faces immediate resistance at $2,040.02, with further challenges at $2,048.79 and $2,058.63.

These levels serve as critical benchmarks for potential upward movements. Conversely, support is established at $2,021.29, followed by additional layers at $2,013.19 and $2,001.46, providing potential floors against downward trends.

The 50-Day and 200-Day Exponential Moving Averages, closely aligned at $2,028.74 and $2,028.54 respectively, indicate a balanced market sentiment. Gold’s current symmetrical triangle pattern suggests resistance around the pivot point, which could be a decisive factor in determining its next move. In conclusion, gold exhibits a bullish outlook above the $2,030 mark.

Silver Prices Forecast

Silver – Chart

Silver is currently witnessing a notable upswing, trading at $22.72850, a 1.28% increase. The metal’s immediate focus is the pivot point at $22.50207, where it faces the first resistance at $22.84498. Breaching this could lead to further resistance levels at $23.28515 and $23.72968, which are critical in assessing its upward potential.

Support for silver lies at $22.21760, with subsequent levels at $21.91560 and $21.59303, potentially cushioning any downward movements. The positioning of the 50-Day EMA at $22.65035 and the 200-Day EMA at $23.20722 provides insights into the longer-term trend.

Currently, silver is navigating a downward channel, challenged by resistance near $22.8449. The emergence of a bullish engulfing candle, however, signals a shift towards a potential uptrend. Overcoming the $22.8449 mark could see silver advancing towards $23.2851. In essence, silver’s current movement is bullish above the pivot point of $22.50207.

Copper Prices Forecast

Copper – Chart

Copper is currently experiencing a noteworthy ascent, trading at $3.89186, a rise of 1.89%. The metal’s trading dynamics revolve around a pivot point at $3.87267. It faces initial resistance at $3.91053, with further resistance levels at $3.93561 and $3.97199, which will be crucial in evaluating its potential to climb higher.

Conversely, support levels are established at $3.84169, followed by $3.80579 and $3.75908, providing a safety net against any pullbacks. The 50-Day and 200-Day Exponential Moving Averages, at $3.80059 and $3.81612 respectively, offer additional insights into the trend.

A key observation in copper’s technical chart is the breakout of a downward trendline at the $3.8200 level, coupled with the formation of two solid bullish engulfing candles. These patterns indicate a shift towards a buying trend.

In summary, copper’s current market position is bullish above the pivot point of $3.87267, hinting at a potential for continued upward movement if it sustains above this crucial threshold.

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About the Author

Arslan Aliauthor

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.