Gold, Silver, Copper Daily Forecast: XAU/USD Clings to $2,036; More Buying Ahead?

By:

Arslan Ali

Updated: Feb 29, 2024, 06:15 GMT+00:00

Key Points:

Gold holds steady amid U.S. inflation data wait, trading between $2,025 and $2,050 an ounce.
Silver and platinum futures notch slight gains despite overall monthly declines, indicating mixed sentiment.
Copper's movements are muted, with market eyes on China's economic indicators for future demand cues.

In this article:

Gold

+0.94%

Silver

+2.62%

Copper

+0.50%

Gold Stabilizes Amid Rate Hike Speculations and Inflation Concerns

Gold prices remained stable in Asian trading on Thursday, as investors awaited crucial U.S. inflation data, influencing interest rate trajectories. Federal Reserve officials’ recent comments underscored the need for further action to curb inflation, reinforcing the stance against early rate cuts.

This sentiment has confined gold within a $2,025 to $2,050 an ounce range, reflecting concerns over the increased costs of holding non-yielding assets like gold.

Meanwhile, silver and platinum futures experienced slight gains, despite facing monthly losses. Copper prices also saw minimal movement, with attention shifting to China’s economic indicators, which could provide significant insights into the demand from the world’s largest copper importer.

The anticipation of sustained higher interest rates has pressured gold and other precious metals, while the dollar’s strength could continue to influence their market dynamics.

Gold Prices Forecast

Gold – Chart

Gold modestly ascends to $2036.66, charting a 0.04% increase, signaling cautious optimism among investors. The pivot point for today is set at $2028.42, with the precious metal showing a bullish trend above this mark. Resistance levels are identified at $2039.47, $2048.31, and $2057.62, challenging further upward movements.

Conversely, support is found at $2016.22, followed by $2005.35 and $1995.58, offering downside protection. The 50-day and 200-day Exponential Moving Averages, at $2028.08 and $2025.86 respectively, suggest a stable uptrend.

Given these metrics, Gold’s trajectory appears bullish above the pivot, potentially testing the resistance at $2039.47 in the near term.

Silver Prices Forecast

Silver – Chart

Silver is currently priced at $22.50, marking a modest uptick of 0.18%. The metal’s trading pivot point stands at $22.61, suggesting a slight bearish bias in the immediate term. Resistance levels are anticipated at $22.80, $23.00, and $23.19, which Silver must surpass to indicate a stronger upward momentum.

Conversely, support levels are established at $22.29, followed by $22.12 and $21.93, providing critical junctures for potential rebounds. The 50-day and 200-day Exponential Moving Averages, recorded at $22.67 and $22.82 respectively, highlight a near-term downtrend, reinforced by a downward channel pattern.

This configuration suggests Silver may encounter resistance at the $22.61 pivot, necessitating close monitoring for signs of directionality.

Copper Prices Forecast

Copper – Chart

Copper is currently trading at $3.85, marking a 0.36% increase from the previous day. The metal’s pivot point is at $3.83, indicating a bullish sentiment above this level. Immediate resistance is observed at $3.88, with further barriers at $3.91 and $3.94.

On the downside, support levels are established at $3.81, $3.78, and $3.75, respectively. The 50-day Exponential Moving Average (EMA) stands at $3.84, closely aligning with the 200-day EMA at $3.83, suggesting a potential for price stability or mild upward momentum.

The convergence of these EMAs near the pivot point reinforces the bullish outlook, provided Copper remains above $3.83.

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.