Gold, Silver, Copper Daily Forecast: Metals on the Rise; XAU/USD to Target $2040?

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Published: Feb 27, 2024, 07:20 GMT+00:00

Key Points:

Gold's cautious uptick to $2033.51 amid high US rates suggests resilience, yet uncertainty looms with pivotal economic data ahead.
Silver edges higher to $22.58, finding support above pivotal levels; market eyes on EMA trends for directional cues.
Copper's rise to $3.85 reflects market optimism, with eyes on Chinese PMI data; pivotal levels and EMAs indicate bullish sentiment.

Gold Stalls in High-Interest Climate: A Glimpse at Metals Amid Monetary Tightening

Gold prices remained subdued in Asian trade, oscillating within the $2,020 to $2,050 range due to expectations of persistently high U.S. interest rates. Federal Reserve officials’ comments suggested no swift policy easing amid ongoing inflation concerns, keeping the dollar near three-month highs.

The focus now shifts to the upcoming U.S. economic data, including the PCE price index and GDP figures, for further direction. This environment, unfavorable for non-yielding assets like gold, also affects other precious metals; platinum and silver experienced marginal gains while remaining influenced by the same factors.

Meanwhile, copper prices saw a slight increase, with upcoming Chinese purchasing managers index data being the next significant market catalyst. This scenario underscores how higher interest rates dampen the appeal of gold, silver, and copper by raising the opportunity cost of holding these metals.

Gold Prices Forecast

Gold – Chart

In today’s analysis, gold nudged higher, trading at $2033.51, marking a 0.14% increase. This movement places the metal just above its pivot point of $2029.80, indicating potential for continued upward momentum.

Resistance levels are identified at $2039.47, $2048.31, and $2059.16, delineating possible hurdles for further price gains. On the downside, support levels are established at $2016.22, $2005.35, and $1989.35, which could provide cushioning against declines.

The 50-Day and 200-Day Exponential Moving Averages, standing at $2025.05 and $2024.98 respectively, underscore a bullish sentiment, as current prices hover above these indicators.

Silver Prices Forecast

Silver – Chart

Silver’s performance on February 27 indicated a modest uptick, trading at $22.58, a 0.32% increase from the previous day. This positions the metal comfortably above its pivot point at $22.49, hinting at a bullish trend if it continues to trade above this threshold.

Resistance levels are pegged at $22.75, $23.00, and $23.19, each marking potential ceilings for upward movement.

Conversely, support is found at $22.32, $22.16, and $21.93, providing floors to mitigate any downward shifts. Notably, the 50-Day and 200-Day Exponential Moving Averages, at $22.78 and $22.86 respectively, slightly exceed the closing price, suggesting a cautious optimism among traders.

Copper Prices Forecast

Copper – Chart

In today’s financial markets, copper has shown a notable uptick, advancing by 0.51% to a price point of $3.85. This price movement situates the metal squarely at its pivot point, indicating a poised stance for either direction.

With immediate resistance levels awaiting at $3.88, $3.91, and $3.94, copper’s trajectory could face hurdles if upward momentum continues. Conversely, support levels are established at $3.81, $3.78, and $3.75, offering a safety net against potential declines.

The alignment of the 50-Day and 200-Day Exponential Moving Averages at $3.85 and $3.82 respectively further bolsters a bullish outlook, provided copper maintains its ground above these averages. Given these dynamics, the current assessment leans towards a bullish trend, contingent on sustaining prices above the pivotal $3.85 mark.

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

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.