Gold, Silver, Copper Daily Forecast: Rate Cuts Propel XAU Near $2,100; Buy Now?

By:

Arslan Ali

Updated: Mar 4, 2024, 05:47 GMT+00:00

Key Points:

U.S. economic data fuels gold's surge, with eyes set on breaking the $2,100 mark.
Silver and copper's prices reflect market anticipation ahead of Fed's policy updates.
Investor focus on Fed Chair Powell's testimony and U.S. NFP data for future metal prices.

In this article:

Gold

-0.68%

Silver

-0.96%

Copper

+0.51%

Metals Market Watch: Gold Hits Nine-Week High Amid Rate Cut Expectations

Gold (XAU/USD) approaches a nine-week pinnacle, flirting with the $2,100 threshold as recent U.S. economic setbacks fuel rate cut speculations, bolstering gold’s allure.

Simultaneously, silver and copper navigate through market nuances, influenced by broader economic indicators and Federal Reserve policies. Gold’s climb, amidst softened U.S. Treasury yields, underscores investor’s heightened interest, positioning gold near $2,080.

U.S. Manufacturing PMI’s contraction and Fed’s steady policy rate amplify gold’s appeal, juxtaposed against mixed signals from Chinese manufacturing. Upcoming economic announcements, including Chinese Services PMI and U.S. ISM Services PMI, alongside Fed Chair Powell’s testimony and U.S. NFP data, are poised to shape the metals’ market trajectory.

Gold Prices Forecast

Gold – Chart

Gold‘s recent downturn, with a minor decrease to $2080.88, navigates through a cautious market. Positioned below a pivotal $2088.49, it faces resistance at $2100.68, $2112.88, and $2123.01, suggesting hurdles for an upward trajectory.

Conversely, support levels at $2069.75, $2058.28, and $2046.58 offer potential stability. The Relative Strength Index (RSI) and the 50-Day and 200-Day Exponential Moving Averages (EMAs) at $2040.05 and $2029.48, respectively, signal a bearish outlook under $2088.49.

Yet, surpassing this threshold could pivot towards bullish sentiment, highlighting the delicate balance in gold’s current market dynamics.

Silver Prices Forecast

Silver – Chart

Silver‘s price slightly decreased to $23.04, reflecting a cautious sentiment in the market. Positioned just under the pivot point of $23.11, it confronts immediate resistance levels at $23.28, $23.43, and $23.63, which could limit upward movements.

Support levels are established at $22.92, $22.75, and $22.58, suggesting areas where declines might stabilize. The 50-Day and 200-Day Exponential Moving Averages, at $22.73 and $22.82 respectively, indicate a potential for bullish momentum if silver surpasses the $23.11 mark.

However, remaining below this threshold could maintain bearish pressure, underscoring the importance of these key price levels in determining silver’s short-term direction.

Copper Prices Forecast

Copper – Chart

Copper‘s market dynamics present a slight downturn, with its price at $3.84, marking a 0.30% decline. The metal hovers around its pivot point of $3.84, suggesting a balanced field of play between buyers and sellers.

Resistance levels at $3.87, $3.91, and $3.94 delineate potential ceilings for price escalations, while support at $3.81, followed by $3.78 and $3.75, outlines critical zones for price stabilization.

The close proximity of the 50-Day EMA ($3.85) to the current price, alongside the 200-Day EMA ($3.83), indicates a narrowly bullish sentiment, contingent on sustaining above the pivot point. This subtle bullish bias underscores copper’s potential for upward movement, provided it maintains above $3.84.

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.

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