Gold, Silver, Copper Analysis: XAU/USD Dips, Eyes on Fed’s Signals

Key Insights

Quick Fundamental Outlook

Gold prices have dipped to a near one-week trough, as the dollar gains strength and the appeal for safe havens wanes. The focus is now on Federal Reserve officials’ upcoming remarks for clues on interest rate directions.

The dollar’s resurgence is weighing on gold, rendering it more expensive for non-dollar investors, coinciding with a slight easing in geopolitical tensions and a better appetite for risk, as seen with Israel’s softening stance towards Gaza.

Speculation is rife that the Fed may halt interest rate increases following signs of a slowing job market, a sentiment mirrored by a rebound in Treasury yields, suggesting investors are reassessing the rate outlook.

Despite the initial drop post-jobs data, yields on Treasury notes have bouned back, indicating investor speculation about a potential pause in the Fed’s monetary tightening cycle.

Gold Prices Forecast

Gold: In the November 7th technical outlook for gold, the precious metal is trading at $1,965.21, marking a 0.65% decline within the last 24 hours. The four-hour chart reveals a pivot point at $1,976.25, with gold currently facing immediate support and resistance levels at $1,960.06 and $1,994.53, respectively.

The Relative Strength Index (RSI) stands at 32, suggesting that gold is nearing oversold conditions, while the MACD indicates a bearish trend as the line remains below the signal.

The 50 EMA at $1,980.66 is currently above the price, reinforcing a short-term bearish sentiment. A sideways channel breakout suggests a potential sell signal. Analysts forecast that if the price stays below $1,976.25, the bearish trend may continue, possibly testing further supports at $1,944.70 and $1,928.02 in the short term.

Silver Prices Forecast

Silver’s outlook on November 7th reflects a bearish tone as it stands at $22.50, down 2.17% on the 4-hour chart. The metal’s pivot point is at $22.56, with immediate resistances looming at $22.93 and further at $23.27 and $23.61. Conversely, supports are found at $22.23, $21.98, and $21.74.

The RSI, at 32, is pointing towards an oversold territory, hinting at a potential reversal or continuation of the downtrend. The MACD’s slight dip below the signal line suggests bearish momentum. The price hovers below the 50 EMA of $22.93, reinforcing short-term bearish sentiment.

A descending triangle pattern has been spotted, indicating a consolidation with a bias towards a downward breakout. Should silver breach the crucial $22.50 level, it could confirm a bearish trend, potentially testing lower support levels.

Copper Prices Forecast

Copper’s technical posture on November 7th leans bearish, with the commodity trading at $3.69, marking a 1.37% drop within a 4-hour timespan. It currently pivots at the same price, with a layered resistance structure at $3.74, $3.78, and $3.82, and support steps at $3.66, $3.63, and $3.61.

The Relative Strength Index (RSI) hovers at 45, suggesting a neutral to bearish sentiment, without extreme conditions. The MACD indicator is just below the signal line, hinting at a possible bearish trend ahead.

Price stability at the 50 EMA, which coincides with the current price, indicates a potential shift in momentum if breached. Notably, an upward channel breakout above $3.70 signals selling pressure.

The bearish stance is reinforced below the $3.70 threshold, with an anticipation of a downward push to test subsequent support levels in the short term.

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