Gold, Silver, Copper Daily Forecast: Nonfarm Payrolls to Set Direction Amid Dollar Strength

Arslan Ali
Published: Jan 5, 2024, 13:14 GMT+00:00

With gold and copper waiting for the Nonfarm Payrolls outcome, the market is poised for potential shifts influenced by labor data and the dollar's movement.

Metal Recap

In this article:

Key Insights

  • Gold Struggles Below Key Levels: Anticipation of U.S. labor data keeps gold subdued, impacting its rebound momentum and rate cut speculations.
  • Copper Faces Weekly Losses: Copper prices affected by global manufacturing slowdowns and China’s economic uncertainties.
  • Silver Shows Bearish Trend: Break below pivotal points and weak RSI indicates continued downward movement for silver.
  • Market Eyes Nonfarm Payrolls Data: Crucial for direction of metals, with expectations of labor market cooling influencing Fed’s rate decisions.
  • Dollar’s Rise Affects Metals: Stronger dollar impacts gold and copper, setting the stage for a volatile trading session.

Silver Prices Forecast

Silver - Chart
Silver – Chart

Silver, on January 5th, is exhibiting signs of a bearish trend, indicated by a minor decline of 0.10%, positioning it at $22.98. Its technical landscape is shaped by its break below the crucial pivot point of $23.18 and the 50-Day Exponential Moving Average (EMA) of $23.58.

This breach signals potential continued weakness, reinforced by the Relative Strength Index (RSI) at 35, suggesting bearish momentum as it is below the neutral 50 mark. Key resistance levels are identified at $23.53, $24.01, and $24.49, which if surpassed, could alter the current bearish sentiment. Conversely, support is found at $22.53, $21.99, and $21.58.

The break below the symmetrical triangle pattern, previously supporting at $23.17, now acts as resistance, consolidating the bearish outlook. The overall trend for silver is bearish below the $23.17 level, necessitating close monitoring of these technical indicators for any shifts in market dynamics.

Copper - Chart
Copper – Chart

Copper, on January 5th, is displaying a bearish tendency, having declined by 0.72% to $3.83. This downtrend is substantiated by key technical indicators. The pivot point is set at $3.87, with copper trading below this level, suggesting potential further downward movement.

Immediate resistance levels are positioned at $3.91, $3.97, and $4.02, while support levels are identified at $3.80, $3.76, and $3.71. The Relative Strength Index (RSI) at 32, edging towards the oversold territory, indicates bearish sentiment. Copper’s trading below its 50-Day Exponential Moving Average (EMA) of $3.88 further confirms the bearish outlook.

The observed pattern of an upward trendline breakout and closing below $3.85 signals a likelihood of continued selling pressure. The overall trend for copper remains bearish, especially if it stays below $3.87, pointing towards a potentially extended decline in price.

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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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