Gold, Silver, Copper Daily Forecast: Fed Rate Doubts & Dollar Impact, XAU at $2,030

Arslan Ali
Published: Feb 7, 2024, 13:17 GMT+00:00

Amid Fed rate speculation and dollar's dynamics, Gold holds firm at $2,030, signaling a cautious market eyeing U.S. inflation data.

Metals Recap

In this article:

Key Insights

  • Gold steadies as dollar’s strength poses challenges; eyes on U.S. inflation data for future direction.
  • Silver’s price dip reflects market caution, with pivot point analysis indicating bearish sentiment below key levels.
  • Copper faces downward pressure amidst China’s economic uncertainty, highlighting global demand concerns.

Gold prices showed minimal change, finding slight support as the dollar receded from its three-month peak, though the fading anticipation of early U.S. rate cuts clouds the metal’s future.

Amid expectations of enduring high rates fueled by robust U.S. economic indicators and Federal Reserve officials’ firm stances, gold and silver’s appeal is dampened, as high rates elevate the opportunity cost of holding non-yielding bullion.

Despite a modest dollar decline, it maintains its strength in 2024, impacting gold, which steadied at $2,035.12 an ounce. The market now eyes upcoming U.S. inflation data for direction.

Meanwhile, copper prices dipped slightly, influenced by awaiting further economic indicators from China, the leading copper consumer. Concerns over China’s demand have pressured copper, especially after disappointing PMI readings and uncertain post-COVID recovery prospects.

Gold Prices Forecast
Gold - Chart
Gold – Chart

Copper Prices Forecast

Copper - Chart
Copper – Chart

Copper’s trading dynamics on February 7 show a slight decline, with the price at $3.79314, down by 0.31%. The pivot point is at $3.81727, delineating today’s price threshold.

Resistance levels are identified at $3.85201, $3.87158, and $3.89825, indicating potential barriers to upward movements. Support is found at $3.78375, followed by $3.76172 and $3.73184, marking zones where price declines may halt.

The 50-Day and 200-Day Exponential Moving Averages, at $3.82509 and $3.84145 respectively, suggest a bearish outlook unless Copper surpasses the pivot point of $3.81727.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

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.