Gold, Silver, Copper Daily Forecast: Metals Weigh Fed’s Next Move
Gold prices hover near $1,986, as investors brace for the Fed’s interest rate verdict and its ripples through the metals market.
Key Insights
- Gold steadies at $1,986, eyeing Federal Reserve rate decision impacts.
- Silver ascends to $22.93, with technicals hinting at a potential uptrend.
- Copper nudges up to $3.80, showing cautious optimism amid economic signals.
- US CPI data and Chinese industrial outlook set to sway metals markets.
- Metals react to a stronger dollar and risk sentiment, affecting investment appeal.
Quick Fundamental Outlook
Gold prices stabilized near $1,986 an ounce after retreating from record highs above $2,100 earlier in the month, amid anticipation of US CPI data and the Federal Reserve’s rate decision.
Expectations that the Fed may not cut rates soon, given the resilient US economy, have strengthened the dollar and promoted risk appetite, pressuring gold. Meanwhile, copper prices marginally recovered to $3.7945 a pound following concerns about China’s economic slowdown impacting demand.
The metals market remains attentive to the Fed’s signals and forthcoming Chinese industrial data. This cautious market sentiment has influenced gold, silver, and copper, keeping them below their peak prices for the year.
Gold Prices Forecast
Gold’s glimmer has caught investors’ eyes as it ascends modestly to $1,985, marking a 0.23% uptick on December 12. The precious metal’s rally comes despite a pivot point set firmly at $2,000.
Looking upward, resistance levels are staged at $2,020, followed by $2,051 and $2,079, each a potential gatekeeper to further gains. Support, however, firms up at $1,976, with subsequent floors at $1,956 and $1,933.
The Relative Strength Index (RSI) hovers at 34, hinting at a market that isn’t oversold yet, while the MACD’s negative posture suggests lingering caution among traders.
Despite this, a bullish engulfing candle close above the critical $1,980 level could herald a resurgence of buying interest. As such, gold maintains a shine for bullish prospects above this support, with the market’s eyes set on the near resistance at $2,020 in the days ahead.
Silver Prices Forecast
Silver edges higher with a current valuation at $22.93, marking a 0.58% rise as of December 12. The lustrous metal, often in gold’s shadow, finds itself at a pivot point of $22.75, having already breached it with today’s movement.
Technical resistance lies ahead at $23.31, with further tests at $23.68 and $24.13. Meanwhile, support levels are cast below at $22.34 and down to $21.57. The Relative Strength Index (RSI) at 31 suggests the metal is nearing oversold territory, offering a potential springboard for a bullish trajectory.
Additionally, the MACD shows a positive cross, albeit marginal, indicating an uptrend. Silver’s posture above the $22.75 threshold suggests a bullish tilt, with an eye towards challenging the resistance at $23.31 in the short term.
Copper Prices Forecast
Copper, the bellwether for economic health, has ticked up to $3.80, reflecting a 0.53% gain on December 12. This uptick is a whisper of optimism in the commodities market, which has seen the red metal holding steadfast at its pivot point of $3.80.
With the metal’s immediate resistance awaiting at $3.87 and successive barriers at $3.93 and $3.99, market participants are watching closely. The RSI balances at a neutral 50, suggesting an equilibrium between buying and selling pressures.
Meanwhile, the MACD’s slight nudge above the signal line may hint at emerging bullish sentiment. With support levels drawn at $3.73 and below, copper’s near-term outlook appears cautiously bullish above $3.75, with the potential to scale up to test higher resistances.
For a look at all of today’s economic events, check out our economic calendar.