Gold, Silver, Copper Daily Forecast: XAU/USD Slides Below $2,030, Silver & Copper Face Resistance

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Published: Jan 22, 2024, 11:34 GMT+00:00

Gold struggles under high Fed rates, finding support at $2,029.83; Silver and Copper reveal bearish trends in key technical levels.

In this article:

Gold

-0.30%

Silver

-0.25%

Copper

+0.81%

Key Insights

Gold price dips amid Fed’s high-rate stance; key support at $2,029.83 limits deeper losses.
Silver’s descent below pivot point at $22.5055 indicates bearish trend; key resistances identified.
Copper faces resistance at $3.8056; bearish pattern suggests potential for ongoing price decline.

Quick Fundamental Outlook

In the Asian markets, gold prices declined on Monday, affected by the likelihood of the U.S. Federal Reserve maintaining elevated interest rates longer than anticipated.

Despite this downward trend, gold remained above key price points, buoyed by its status as a safe-haven asset and a temporary dip in the U.S. dollar. However, the prospect of enduring high U.S. interest rates put pressure on gold, with spot prices falling to $2,022 per ounce.

Copper prices also witnessed a slight drop, primarily driven by concerns about China’s economic rebound and the People’s Bank of China’s decision to maintain benchmark lending rates. This suggests limited room for further monetary easing to stimulate growth.

Consequently, the recalibration of expectations regarding the Fed’s interest rate policy and the prevailing economic uncertainties in major economies are influencing the price movements of both gold and copper in the market.

Gold Prices Forecast

Gold – Chart

Gold’s current market performance indicates a slight decline, trading at $2,021.64, down by 0.39%. On a technical front, the asset is navigating around a key pivot point at $2,029.83. Should Gold maintain above this level, it may confront immediate resistance at $2,040.02, followed by higher barriers at $2,058.20 and $2,070.88.

Conversely, support levels are established at $2,013.71, with further potential floors at $1,996.08 and $1,976.15. The 50-day and 200-day Exponential Moving Averages (EMAs) at $2,030.14 and $2,028.84 respectively, are currently acting as critical indicators of the market trend.

A symmetrical triangle pattern is observed, marking resistance near $2,040 and support around $2,010. This pattern suggests a consolidating market, with potential for breakout in either direction. In conclusion, Gold’s current trajectory appears bearish below the pivot point of $2,029.83.

Silver Prices Forecast

Silver – Chart

Silver currently exhibits a downward trend, trading at $22.1065 with a significant drop of 2.22%. Analyzing the 4-hour chart, the metal has breached a critical pivot point at $22.5055, indicating a shift in market dynamics. Resistance levels are now set at $22.9566, $23.3620, and $23.7297, which may pose challenges to any upward movement.

On the downside, Silver finds immediate support at $21.9850, followed by subsequent levels at $21.5930 and $21.3103. The 50-day and 200-day Exponential Moving Averages (EMAs) are positioned at $22.8358 and $23.3254, respectively, suggesting a bearish market sentiment.

A key observation is the violation of a descending triangle pattern, previously offering support around the $22.5055 mark. In summary, Silver’s market outlook appears bearish below the $22.5055 threshold, signaling a potential continuation of the current downtrend.

Copper Prices Forecast

Copper – Chart

Copper’s price is experiencing a downturn, currently trading at $3.78587, down by 0.60%. Analyzing its 4-hour chart, the metal’s pivot point at $3.8056 is significant for predicting short-term movements. Resistance is observed at $3.8342, with subsequent levels at $3.8668 and $3.8968, challenging any upward momentum.

Support is found at $3.7587, followed by $3.7286 and $3.7001, critical in mitigating further declines. The 50-day Exponential Moving Average (EMA) at $3.7883 and the 200-day EMA at $3.8163 suggest a bearish market trend.

Copper’s formation of a double top pattern at $3.8056 and a tweezers top pattern near the same level indicate a possible continuation of the bearish trend. The overall market sentiment for Copper remains bearish unless it breaches the $3.8056 resistance, pointing towards potential further decreases in price.

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.