Gold remains bullish despite a minor correction, with expectations of Fed rate cuts strengthening its appeal; set to end 2023 with over 13.50% gains
Key Insights
Gold’s price remained steady at $2071 on Friday, December 29, within a well-defined technical framework. The key pivot point is set at $2,064, with resistance levels at $2,088, $2,108, and $2,131. Support lies at $2,045, $2,018, and $2,000.
The Relative Strength Index (RSI) at 55 suggests a neutral market stance, slightly leaning towards bullish. However, the Moving Average Convergence Divergence (MACD) is at -2.43, below its signal line, indicating potential momentum shifts.
A significant chart development is the breach of the upward trendline at $2065, hinting at possible further declines if gold remains below this level. This breach suggests a bearish outlook, with investors and analysts closely monitoring these developments in the ever-evolving economic landscape.
On Friday, December 29, Silver experienced a downturn, trading at $23.817, marking a 1.13% decline. The metal’s technical landscape is defined by a pivotal point at $24.20, with resistance levels at $24.63, $24.91, and $25.55. Support levels are identified at $23.81, $23.52, and $23.31.
The Relative Strength Index (RSI) stands at 36, leaning towards a bearish sentiment, and the Moving Average Convergence Divergence (MACD) is at -0.07, indicating a potential downward momentum. Notably, Silver is trading below its 50-Day Exponential Moving Average (EMA) of $24.11, reinforcing the bearish trend.
A key chart pattern is a symmetrical triangle breakout at $24.10, suggesting a selling trend in the market. Consequently, the outlook for Silver is bearish below the $24.10 mark, with the market closely watching these technical levels for future price action.
Copper is experiencing a slight decline, trading at $3.93236, down 0.10%. Key technical levels place the pivot point at $3.94, with resistance levels at $3.97, $4.02, and $4.06. Support lies at $3.89, $3.85, and $3.80.
The Relative Strength Index (RSI) at 51 suggests a neutral sentiment, while the Moving Average Convergence Divergence (MACD) is marginally below its signal line, hinting at a potential bearish trend.
Trading below its 50-Day Exponential Moving Average (EMA) of $3.91, copper faces a retest of the previously breached support at $3.95, now a resistance level. This bearish trend below $3.95 will be critical for short-term market predictions in copper trading.
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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.