Gold, Silver, Copper Daily Forecast: Powell’s Speech Impact; Sell XAU Below $2135?

Impact on Gold, Silver, Copper Forecast Amid Powell Testimony

Gold us steady in Asian trade Wednesday ahead of Federal Reserve Chair Jerome Powell’s testimony, reversing from Tuesday’s record highs driven by safe-haven demand and expectations of a U.S. rate cut in 2024.

ANZ analysts suggest the move to gold reflects fears of a stock market correction. The testimony’s outcome could impact gold’s rally, especially if Powell presents a hawkish stance, given the U.S. inflation scenario and the Fed’s reluctance to cut rates.

Silver and copper also showed mixed reactions; silver futures dropped, while copper remained steady amidst ongoing uncertainty in China’s economic policies.

The financial markets eagerly anticipate Powell’s remarks and upcoming U.S. nonfarm payrolls data for further direction. Later today, US ADP Non-Farm Employment Change will also be in highlights.

Gold Prices Forecast

Gold (XAU/USD) is trading at $2126.71, reflecting a slight downtrend of 0.05%. The 4-hour chart analysis highlights pivotal levels for traders: a pivot point at $2134.52 sets the tone for current trading strategies.

Resistance levels are arrayed at $2148.96, $2162.51, and $2177.55, presenting potential barriers to upward movements. Conversely, support comes into play at $2111.15, followed by further cushions at $2096.36 and $2079.53, which could stabilize drops.

Key technical indicators, the 50-day Exponential Moving Average (EMA) at $2069.99 and the 200-day EMA at $2039.43, underscore a prevailing bullish sentiment over the medium to long term. However, the market stance is bearish below the pivot of $2134.52.

Silver Prices Forecast

Silver‘s trading session sees it at $23.64, a marginal decrease of 0.13%. On a 4-hour chart, the metal navigates near a pivot point of $23.67. Resistance is established at $23.89 and extends to $24.07, delineating potential upper bounds for price movements.

Conversely, immediate support is found at $23.34, with subsequent levels at $23.16 and $23.02, potentially offering floors for declines. The 50-day Exponential Moving Average (EMA) at $23.10 and the 200-day EMA at $22.92 suggest underlying bullishness in the longer term. Nonetheless, the current stance remains bearish below $23.67.

Copper Prices Forecast

Copper prices have experienced a slight uptick, currently trading at $3.85, marking a 0.23% increase. This positive movement situates Copper at its pivot point, also at $3.85, on a 4-hour chart framework. The metal faces immediate resistance levels at $3.87, $3.89, and a further ceiling at $3.91, which could restrict upward price movements.

Support levels are identified at $3.82, $3.79, and $3.77, acting as buffers against potential declines. Notably, the 50-day Exponential Moving Average (EMA) aligns with the current price at $3.85, while the 200-day EMA slightly trails at $3.83, indicating a closely matched bullish sentiment in the short to medium term.  The prevailing trend suggests a bullish outlook above the $3.85 threshold.

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