Gold, Silver, Copper Daily Forecast: XAU/USD Drops Below $2150, More Sell-off Ahead?

By:

Arslan Ali

Published: Mar 18, 2024, 06:22 GMT+00:00

Key Points:

Gold prices decline ahead of Fed meeting, signaling investor caution and interest rate speculation.
Copper retreats from 11-month high amidst China's mixed economic data, impacting demand forecasts.
Silver's value dips, influenced by a stronger dollar and high Treasury yields, with market eyes on Fed cues.

In this article:

Gold

-0.68%

Silver

-0.96%

Copper

+0.51%

Market Overview

Ahead of the Federal Reserve’s upcoming meeting, gold prices dipped as the market’s anticipation for interest rate clues heightened, leading investors away from non-yielding assets. Similarly, after reaching 11-month peaks, copper prices saw a decline, influenced by mixed economic signals from China and a round of profit-taking.

The broader metals market, including silver, felt the pressure as the dollar gained strength and Treasury yields remained above 4%, hinting at a cautious stance among traders. This week’s Fed meeting is crucial, with markets poised for any indications of future rate adjustments amid recent inflation concerns.

While gold retreated from earlier highs, analysts see potential fluctuations with an upward end-2024 target, suggesting a volatile yet optimistic outlook for precious metals. Copper’s recent rally was tempered by China’s uneven economic recovery, affecting demand forecasts for the metal.

Gold Prices Forecast

Gold – Chart

Gold experienced a minor downturn, decreasing by 0.39% to a price of $2146.83. The precious metal is currently navigating below its pivot point at $2155.72, hinting at a bearish sentiment in the short term. Resistance levels are established at $2172.77, $2196.38, and $2208.45, presenting potential barriers to upward movements.

Conversely, support is found at $2142.15, with further levels at $2130.66 and $2110.45, indicating areas where losses may be stemmed. The 50-Day Exponential Moving Average (EMA) at $2150.83 and the 200-Day EMA at $2087.24 suggest a cautious market outlook.

Gold’s breach of the descending triangle pattern near the $2157 level points towards potential for increased selling pressure, especially if it fails to reclaim ground above the $2155.72 pivot point, solidifying the current bearish trend.

Silver Prices Forecast

Silver – Chart

Silver’s price fell by 0.70%, trading at $24.98. The metal’s current trajectory places it beneath its pivot point of $25.19, suggesting a bearish outlook for the moment. Resistance levels are delineated at $25.45, $25.66, and $25.91, which could hinder upward price movements.

Conversely, support is identified at $24.81, with additional safety nets at $24.61 and $24.39 that may arrest further declines. The 50-Day Exponential Moving Average (EMA) at $24.47 and the 200-Day EMA at $23.55 indicate an overall positive trend despite the day’s loss.

However, maintaining below the critical $25.20 level could signify continued bearish momentum, unless it surpasses this threshold to invite a bullish shift.

Copper Prices Forecast

Copper – Chart

Copper’s market valuation declined slightly by 0.27%, bringing its price to $4.11. The commodity’s performance suggests a cautious market sentiment, currently trading just below its pivot point of $4.13. It encounters immediate resistance at $4.16, with further barriers at $4.19 and $4.22 that could limit any upward momentum.

Conversely, support levels are established at $4.09, $4.03, and the critical $4.00 mark, which are crucial for preventing further losses. The 50-Day Exponential Moving Average (EMA) at $3.99 and the 200-Day EMA at $3.89 both indicate a generally positive trend over the longer term.

However, the current stance is bearish below $4.10, suggesting that surpassing this threshold could shift the market outlook towards a more bullish perspective.

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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