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Gold, Silver, Copper Daily Forecast: Metals Dip Despite Fed Rate Cut Hesitations

By:
Arslan Ali
Published: Feb 1, 2024, 12:54 UTC

Despite dovish Fed signals, metals like gold, silver, and copper witness a downturn, as market eyes pivot towards potential May rate adjustments.

Metal Recap

In this article:

Key Insights

  • Metals face a downturn in European markets despite Fed’s rate cut hesitations. 
  • Market focus shifts towards potential May rate cut, pending economic indicators like ISM Manufacturing PMI and Nonfarm Payrolls, which could influence Fed’s stance.
  • Technical analysis for gold shows a bearish trend below pivot point, with resistance and support levels indicating a cautious outlook; copper remains bullish above pivot.

In Thursday’s European trading session, gold and silver prices dipped, reflecting a broader bearish trend in the metals market. This downturn came despite dovish Fed, as the Federal Reserve’s (Fed) expressed hesitance to cut rate in March.

Fed Chair Jerome Powell’s skepticism towards early rate cuts, emphasizing the uncertainty over inflation consistently meeting the 2% target, has tempered expectations for immediate monetary easing.

Instead, market focus has shifted towards the possibility of a rate cut in May, contingent on forthcoming economic data.

Key indicators, such as January’s ISM Manufacturing PMI and Nonfarm Payrolls (NFP), are awaited, with stronger-than-expected employment and wage growth potentially diminishing prospects for a May rate cut.

Gold Prices Forecast

Copper Prices Forecast

Copper - Chart
Copper – Chart

Copper trades lower today, dropping by 0.90% to $3.87778, reflecting a cautious market sentiment. The pivot point for today is established at $3.87250, delineating the neutral line between potential gains and losses. Resistance levels are identified at $3.90100, $3.92951, and $3.95617, each representing a hurdle for upward price movement.

Conversely, support levels are placed at $3.84598, $3.82876, and $3.79613, suggesting areas where buying interest may emerge to cushion the price fall. The 50-day and 200-day Exponential Moving Averages (EMAs) are closely aligned at $3.87367 and $3.83964, respectively, indicating a narrow trading range.

Given these metrics, the market outlook for copper appears bullish above the pivot point of $3.87250, highlighting a potential shift in momentum should prices sustain above this threshold.

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.

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