Gold, Silver, Copper Daily Forecast: Overbought Metals Eye Bearish Correction

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Published: Apr 4, 2024, 06:55 GMT+00:00

Key Points:

Gold dips below $2,300 amid upbeat equities, yet geopolitical strife underpins safe-haven allure.
Dollar's fall ahead of pivotal Nonfarm Payrolls report shores up gold, eyes on Fed rate cues.
Middle East tensions, with Iran-Israel strife, stir market caution, impacting gold, silver, and copper forecasts.

Market Overview

Gold (XAU/USD) slightly retreated from its record high, trading below $2,300, influenced by a positive equity market and overextended daily chart conditions. Despite this, geopolitical tensions from the ongoing Russia-Ukraine conflict and Middle East unrest continue to support gold’s safe-haven demand.

The US Dollar’s decline amid Federal Reserve rate cut uncertainties also props up gold, limiting its downside as the market awaits the Nonfarm Payrolls report. This data will be crucial for the Fed’s rate decision, impacting gold, silver, and copper prices.

The escalating conflict in the Middle East, especially between Israel and Iran, adds to the market’s cautious sentiment, affecting daily forecasts for these metals.

Gold Prices Forecast

Gold – Chart

Gold (XAU/USD) registered a slight decline to $2,259.365, reflecting minor market adjustments. The asset’s pivotal level at $2,302.64 suggests a bearish trend below this mark, with potential upside if surpassed.

Resistance is seen at $2,317.15, extending to $2,334.00 and $2,350.08, while support levels are at $2,274.70, $2,252.39, and $2,235.59.

The 50-day EMA of $2,233.97 and the 200-day EMA of $2,152.23 underpin a solid foundation, indicating a possible bullish turn if the pivot is breached, thus presenting a nuanced outlook for gold’s near-term trajectory.

Silver Prices Forecast

Silver – Chart

Silver’s market position showed a slight downturn, pricing at $27, marking a 0.39% decrease. The critical pivot point at $27.36 suggests a bearish outlook unless surpassed, with resistance levels awaiting at $27.67, $28.05, and $28.46.

Support lines are established at $26.73, $26.35, and $26.06, indicating potential market floors. The 50-day and 200-day EMAs, at $25.52 and $24.43 respectively, reinforce the current trend, signaling a potential shift to a bullish stance if the pivot is breached.

This setup points towards a cautious market sentiment, with possible upside if key levels are surpassed.

Copper Prices Forecast

Copper – Chart

On April 4, Copper exhibited an uptick, trading at $4.247, a 0.46% increase. The pivotal level is set at $4.22, with resistance anticipated at $4.28, $4.35, and $4.40, dictating potential ceilings. Conversely, support is observed at $4.17, $4.10, and $4.05, outlining key levels for downturns.

The 50-day and 200-day EMAs, at $4.09 and $3.99 respectively, hint at underlying strength. Despite the day’s gains, the commodity remains bearish below $4.28, with a breakout above this threshold potentially shifting to a bullish outlook, highlighting a crucial juncture for Copper’s market direction.

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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.