Gold, Silver, Copper Daily Forecast: Post-CPI Slide, XAU/USD Below $2,000 Mark

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Published: Feb 14, 2024, 13:12 GMT+00:00

Inflation fears grip metals market, pushing gold below the crucial $2,000 mark, signaling tighter monetary conditions ahead.

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Gold

-0.68%

Key Insights

January’s higher-than-expected inflation dampens early Fed rate cut hopes, challenging gold’s near-term recovery amid a strengthening dollar.
Silver and copper face headwinds from a robust dollar and high-rate environment fears, with copper near a three-month low.
Gold’s pivot above $1986.091 suggests bullish potential, but trading under the 50-day EMA at $2020.556 warrants caution.

Metals Market Watch: Inflation Data Sways Precious Metals

Gold prices dipped below the pivotal $2,000 per ounce mark following January’s higher-than-anticipated inflation figures, hinting at prolonged elevated Federal Reserve rates. This development erodes early rate cut expectations, dimming gold’s recovery prospects as the dollar strengthens to a three-month peak.

Silver and copper also face downward pressure, with copper nearing a three-month low amid dollar strength and concerns over demand in a high-rate environment Copper’s outlook is further clouded by potential supply increases from a new Zambian deposit, though its immediate impact remains distant.

Gold Prices Forecast

Gold – Chart

Gold‘s performance highlighted a slight decline to $1989.080, marking a 0.15% decrease. With a pivot point at $1986.091, gold’s immediate resistance levels are set at $1995.825, $2005.804, and $2016.365, while support levels lie at $1975.924, $1966.651, and $1956.605.

The positioning of gold above its pivot suggests a bullish sentiment. However, trading below the 50-day EMA at $2020.556 introduces caution.

Investors should monitor these key price levels for potential shifts in gold’s market direction, emphasizing the significance of the pivot point in determining short-term trends.

Silver Prices Forecast

Silver – Chart

Silver’s market performance on February 14 indicates a slight downtrend, with the precious metal’s price decreasing by 0.43% to $22.02700. The pivot point, marked by the green line at $21.93289, serves as a critical juncture for future price movements. Resistance levels are mapped out at $22.17620, $22.32705, and $22.56063, suggesting potential hurdles for bullish momentum.

Conversely, support levels at $21.70895, $21.48437, and $21.29405 provide a safety net against further declines. Despite the day’s downtick, the overall trend leans bullish above the pivot point of $21.93289.

The 50-day EMA at $22.50837 suggests that while current prices are under this average, indicating short-term bearish pressure, the proximity to the pivot point underscores a potentially volatile market.

Copper Prices Forecast

Copper Chart

Copper’s modest ascent during the European session, marked by a 0.07% increase to $3.72724, reflects subtle market optimism. Positioned above its pivot point at $3.70713, Copper faces resistance at $3.75434, $3.78506, and $3.81748. These thresholds delineate potential barriers to upward momentum.

Conversely, support levels at $3.67528, $3.64911, and $3.61840 serve as safety nets, cushioning against declines. The proximity of the current price to the 50-day EMA at $3.76243 and the 200-day EMA at $3.80873 suggests a cautiously bullish outlook.

Overall, Copper’s market direction appears positive as long as it remains above the pivot point, signaling potential for further gains.

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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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