Gold, Silver, Copper Daily Forecast: Metals Dip, XAU at $2023 on Fed Stance

By:

Published: Feb 5, 2024, 13:10 GMT+00:00

As Fed tightens its grip, gold plunges below $2,050, signaling a shift in market expectations. Copper rises amidst global supply concerns.

Gold Retreats as U.S. Jobs Data and Fed Resolve Strengthen Dollar, Lift Treasury Yields

Gold’s descent continued in Monday’s trading, a hangover from last week as robust U.S. job data and the Fed’s firm stance recalibrated rate cut forecasts. The metal tumbled from peaks over $2,050, pressured by the dollar’s ascent to a two-month peak and climbing Treasury yields.

Gold’s slip was catalyzed by January’s solid nonfarm payroll figures and Fed Chair Powell’s emphasis on a cautious approach to policy easing, diminishing expectations for rate reductions as soon as March.

Elevated rates spell trouble for gold, hiking the holding costs, despite its resilience above $2,000 on safe-haven demand amid Middle Eastern tensions.

Conversely, copper edged up, fueled by supply worries from Chilean wildfires, though gains are capped by China’s faltering demand amid its tepid economic rebound.

Gold Prices Forecast

Gold – Chart

In today’s market, precious metal Gold is priced at $2023.745, marking a 0.79% decline within a 4-hour trading window. Currently, the pivot point stands at $2030.205. Gold faces immediate resistance at $2042.587, with further hurdles at $2052.539 and $2064.763.

On the downside, immediate support lies at $2018.225, followed by $2009.459 and $2002.048. The 50-day and 200-day Exponential Moving Averages are converging around $2034.984 and $2030.417, respectively, suggesting a possible inflection point.

The technical posture is bearish below the pivot of $2030.205, indicating that a sustained move under this level could exacerbate the downtrend.

Silver Prices Forecast

Silver – Chart

The current trading value of Silver‘s is $22.4545, down by 1.17% on the 4-hour chart. The metal’s pivot point is $22.69071, with immediate resistance levels noted at $22.92829, $23.20733, and $23.44400.

Supports are positioned at $22.36741, $22.19743, and $21.92746. The 50-day EMA is at $22.85152, suggesting near-term resistance, while the 200-day EMA at $23.09531 indicates a longer-term bearish trend.

The technical outlook is bearish below the pivot point of $22.69071, with a potential reversal if it surpasses this threshold.

Copper Prices Forecast

Copper Chart

Copper is trading at $3.82325, down 0.41% on the 4-hour chart. The pivot point stands at $3.84729, with immediate resistance levels at $3.87158, $3.89825, and $3.92951.

On the support side, copper finds immediate support at $3.78792, with additional levels at $3.76172 and $3.73184. The 50-day EMA is at $3.86314 and the 200-day EMA at $3.84054, both above the current price, reinforcing resistance.

The chart shows a breakout below the upward trendline at $3.84729 and a bearish engulfing candle, indicating a potential downtrend. The outlook for copper remains bearish below the $3.84729 level.

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

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.