Gold, Silver, Copper Daily Forecast: Will an Upward Trendline Spur Buying in XAU/USD?

By:

Arslan Ali

Published: Mar 26, 2024, 06:39 GMT+00:00

Key Points:

Gold's price dips signal cautious trading amid U.S. inflation expectations and a stronger dollar.
Copper's recent decline reflects profit-taking and concerns over China's economic stimulus and demand outlook.
Silver shows a minor decrease, with market trends hinting at bearish sentiment below pivotal points.

In this article:

Gold

-0.68%

Silver

-0.96%

Copper

+0.51%

Market Overview

In Asian trading, Gold prices dipped amid expectations for U.S. inflation data and Federal Reserve decisions, with a robust dollar exerting further pressure. Copper experienced a notable drop as investors capitalized on recent highs, and concerns over China’s demand outlook contributed to the decline.

Gold’s recent descent from peak levels reflects a pivot to the dollar following dovish central bank cues. With the upcoming PCE price index release, gold may encounter resistance, especially if inflation remains high, potentially delaying the Fed’s rate cut plans.

Meanwhile, copper’s downturn, influenced by abundant stockpiles and tepid expectations for Chinese economic stimuli, underscores broader challenges facing metal markets amidst shifting interest rate landscapes and global economic signals.

Gold Prices Forecast

Gold – Chart

Gold (XAU/USD) reveals a slight decrease of 0.05%, trading at $2172.58. The market is currently hovering above a pivot point of $2165.81, suggesting an underlying bullish sentiment. Key resistance levels are identified at $2185.16, $2196.73, and $2212.21, marking potential ceilings for price advances.

Conversely, support can be found at $2149.29, with additional levels at $2134.65 and $2120.02 serving as cushions against downward movements.

The 50-day Exponential Moving Average (EMA) stands at $2167.062, while the 200-day EMA is at $2113.003, both supporting a positive trend. Overall, the trend for Gold remains bullish above $2165, though a drop below this crucial point could trigger a notable sell-off.

Silver Prices Forecast

Silver – Chart

Today’s analysis of Silver (XAG/USD) indicates a minor decline of 0.14%, with the price settling at $24.60. Positioned just below the pivot point of $24.82, the market is currently exhibiting signs of a bearish bias. Resistance levels are set at $25.26, $25.78, and $26.15, delineating potential upward boundaries.

On the downside, support is found at $24.08, with further safety nets at $23.60 and $23.23. The 50-day Exponential Moving Average (EMA) at $24.77 slightly above the current price and the 200-day EMA at $23.97, suggest a tight trading range.

The overall trend for Silver appears bearish below $24.82, but a shift above this threshold could introduce a more bullish outlook.

Copper Prices Forecast

Copper – Chart

Copper‘s market performance today witnessed a downturn, dropping by 0.43% to trading at $4.01. The metal is trading just below its pivot point of $4.04, hinting at a bearish sentiment. Resistance levels are identified at $4.09, $4.13, and $4.17, suggesting ceilings that might cap gains.

Conversely, immediate support is found at $3.95, with subsequent levels at $3.91 and $3.89 potentially providing floors against further declines. The 50-day and 200-day Exponential Moving Averages (EMAs) at $4.04 and $3.94, respectively, offer mixed signals.

The market outlook for Copper remains bearish below $4.04, though a push above this mark could tilt the bias towards bullish.

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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