Gold, Silver, Copper Daily Forecast: DXY Surge Triggers Metals Dip; Sell Now?

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Updated: Mar 25, 2024, 06:15 UTC

Key Points:

Dollar's rise after rate cuts pressures metals; gold falls from highs, silver and copper decline.
Anticipation of Fed rate reductions offers bullish future for gold, potentially reaching $2,300.
Copper's downturn influenced by China's economic concerns, despite a generally tight market outlook.

Market Overview

Gold and silver prices fell as the dollar strengthened following unexpected rate cuts by the Swiss National Bank and dovish moves from other major central banks. This surge in the dollar, reaching a three-week high, exerted significant pressure on precious metals, with gold retracting from its record highs above $2,200 an ounce.

Similarly, copper prices dropped from 11-month highs amid growing concerns over China’s economic outlook and potential U.S. sanctions.

Despite these short-term pressures, the expectation of the Federal Reserve reducing interest rates later in the year may offer a positive turn for bullion prices, with analysts predicting gold to reach $2,300 by year-end.

The dollar’s sharp rise has pressured gold, silver, and copper, pulling them back from recent highs.
Resilience in the U.S. economy and anticipation of Fed rate cuts have investors favoring the dollar, affecting metal investments.
Copper’s decline is compounded by concerns over China’s economy and potential sanctions, despite a tight market outlook.

Gold Prices Forecast

Gold – Chart

On March 22, Gold‘s price experienced a minor retreat, dropping 0.34% to $2,174.12. This slight downturn positions gold just below its pivot point of $2,178.42, suggesting a bearish inclination in the short term. Key resistance levels are mapped out at $2,195.40, $2,206.04, and $2,222.79, delineating potential barriers to upward momentum.

Conversely, support levels at $2,162.58, $2,151.26, and $2,139.26 offer floors that may halt further declines. The 50-Day Exponential Moving Average (EMA) at $2,164.71 and the 200-Day EMA at $2,105.05 indicate underlying strength, yet the current sentiment remains bearish below $2,178.42. A break above this level could pivot to a more bullish outlook.

Silver Prices Forecast

Silver – Chart

Silver‘s market value saw a decline, falling by 0.81% to $24.54700. Positioned beneath its pivot point at $24.82, silver’s current trading dynamics suggest bearish sentiment. Resistance is anticipated at $25.26, escalating to $25.78, and peaking at $26.15, marking thresholds for potential bullish reversals.

Conversely, immediate support lies at $24.08, with subsequent levels at $23.60 and $23.23, indicating areas where downward pressure may subside. The 50-Day Exponential Moving Average (EMA) at $24.83 slightly surpasses current levels, while the 200-Day EMA at $23.87 offers underlying market strength.

Overall, silver’s trend remains bearish below $24.82, with a shift above this crucial marker signaling a possible trend reversal towards bullish territory.

Copper Prices Forecast

Copper – Chart

Copper experienced a notable decline, dropping by 1.18% to $4.02516. This decrease positions it below the pivotal point of $4.06, indicating a bearish trend in the short term.

The immediate resistance level at $4.13, followed by $4.17 and $4.21, outlines potential barriers for upward price movements. Support levels are found at $4.00, $3.95, and $3.89, suggesting critical points where price declines may find a floor.

The 50-Day Exponential Moving Average (EMA) at $4.05 closely aligns with current prices, while the 200-Day EMA at $3.93 supports underlying market strength.

In conclusion, Copper’s market trend remains bearish below $4.06, with opportunities for a bullish shift if it crosses above this key threshold.

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About the Author

Arslan Aliauthor

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.