Gold, Silver, Copper Daily Forecast: Powell’s Hint Sparks Gold’s Rally to $2,300

By:

Arslan Ali

Published: Mar 7, 2024, 06:52 GMT+00:00

Key Points:

Gold's surge, driven by Fed's rate cut signals and weak U.S. data, reaches new heights, spotlighting central banks' sustained interest amid geopolitical tensions.
Silver and copper reflect bullish sentiment, as market eyes U.S. NFP data for future economic cues, underlining metals' role in diverse investment strategies.
Analysts pinpoint $2,300 as gold's short-term peak; global slowdown and central bank demand from China and Russia underscore gold's enduring safe-haven appeal.

In this article:

Gold

-0.68%

Silver

-0.96%

Copper

+0.51%

Metals Navigating Highs Amid Powell’s Rate Cut Hints

Gold’s upward trajectory continues, reaching new highs for the seventh straight day, fueled by weaker U.S. economic indicators and Fed Chair Jerome Powell’s hints at potential rate cuts if inflation declines. This surge is partly attributed to significant futures purchases. Powell’s comments and softer labor market data have diminished U.S. Treasury yields and the dollar’s value, enhancing gold’s attractiveness.

Silver and copper also reflect this trend, with investors closely watching for further economic cues, especially from the upcoming U.S. Non-Farm Payrolls (NFP). Central bank purchases, driven by geopolitical uncertainties and a global growth slowdown, notably from China, underline gold’s status as a secure investment, with notable demand from countries like China, Turkey, Russia, and Poland.

Gold Prices Forecast

Gold – Chart

In today’s gold market, the price has ascended by 0.47%, reaching $2158.25. The pivotal point for the session stands at $2146.02, marking a crucial juncture for future movements.

Resistance levels are identified at $2168.25, $2182.32, and $2196.38, potentially challenging upward momentum. Conversely, support is found at $2127.87, with additional levels at $2114.71 and $2098.83, offering a buffer against declines.

Technical analysis, bolstered by three consecutive bullish engulfing candles and the 50 and 200-day EMAs at $2042.37 and $1982.27 respectively, underscores a prevailing bullish trend, suggesting a strong buying interest above the pivot point.

Silver Prices Forecast

Silver – Chart

Silver‘s trading session witnessed a minor decline of 0.24%, positioning the price at $24.11. The analysis identifies a pivot point at $24.05, which is critical for determining future market direction. Resistance levels are mapped out at $24.30, $24.53, and $24.82, posing challenges for upward price movements.

Support levels, on the other hand, are established at $23.69, $23.33, and $23.02, offering foundational support in case of a downturn. With the 50-day and 200-day Exponential Moving Averages at $23.31 and $22.99 respectively, the market sentiment leans bullish above the pivot point.

A descent below this critical juncture could, however, trigger a more pronounced selling trend.

Copper Prices Forecast

Copper – Chart

In today’s commodities market, Copper has shown a modest increase of 0.31%, bringing its price to $3.88. Our analysis identifies a critical pivot point at $3.87, suggesting a bullish sentiment if sustained above this level. Key resistance points are set at $3.90, $3.93, and $3.96, which Copper must overcome to continue its upward trajectory.

Conversely, support levels are found at $3.84, $3.82, and $3.79, crucial for preventing further declines. The 50-day and 200-day Exponential Moving Averages, at $3.86 and $3.83 respectively, reinforce the bullish outlook. However, a dip below the pivot could signal a shift to a bearish market.

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.

Did you find this article useful?