Gold, Silver, Copper Daily Forecast: Post-CPI Slide, XAU/USD Below $2,000 Mark

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Published: Feb 14, 2024, 13:12 GMT+00:00

Inflation fears grip metals market, pushing gold below the crucial $2,000 mark, signaling tighter monetary conditions ahead.

January’s higher-than-expected inflation dampens early Fed rate cut hopes, challenging gold’s near-term recovery amid a strengthening dollar.
Silver and copper face headwinds from a robust dollar and high-rate environment fears, with copper near a three-month low.
Gold’s pivot above $1986.091 suggests bullish potential, but trading under the 50-day EMA at $2020.556 warrants caution.

Metals Market Watch: Inflation Data Sways Precious Metals

Gold prices dipped below the pivotal $2,000 per ounce mark following January’s higher-than-anticipated inflation figures, hinting at prolonged elevated Federal Reserve rates. This development erodes early rate cut expectations, dimming gold’s recovery prospects as the dollar strengthens to a three-month peak.

Silver and copper also face downward pressure, with copper nearing a three-month low amid dollar strength and concerns over demand in a high-rate environment Copper’s outlook is further clouded by potential supply increases from a new Zambian deposit, though its immediate impact remains distant.

Gold Prices Forecast

Gold – Chart

Gold‘s performance highlighted a slight decline to $1989.080, marking a 0.15% decrease. With a pivot point at $1986.091, gold’s immediate resistance levels are set at $1995.825, $2005.804, and $2016.365, while support levels lie at $1975.924, $1966.651, and $1956.605.

The positioning of gold above its pivot suggests a bullish sentiment. However, trading below the 50-day EMA at $2020.556 introduces caution.

Investors should monitor these key price levels for potential shifts in gold’s market direction, emphasizing the significance of the pivot point in determining short-term trends.

Silver Prices Forecast

Silver – Chart

Silver’s market performance on February 14 indicates a slight downtrend, with the precious metal’s price decreasing by 0.43% to $22.02700. The pivot point, marked by the green line at $21.93289, serves as a critical juncture for future price movements. Resistance levels are mapped out at $22.17620, $22.32705, and $22.56063, suggesting potential hurdles for bullish momentum.

Conversely, support levels at $21.70895, $21.48437, and $21.29405 provide a safety net against further declines. Despite the day’s downtick, the overall trend leans bullish above the pivot point of $21.93289.

The 50-day EMA at $22.50837 suggests that while current prices are under this average, indicating short-term bearish pressure, the proximity to the pivot point underscores a potentially volatile market.

Copper Prices Forecast

Copper Chart

Copper’s modest ascent during the European session, marked by a 0.07% increase to $3.72724, reflects subtle market optimism. Positioned above its pivot point at $3.70713, Copper faces resistance at $3.75434, $3.78506, and $3.81748. These thresholds delineate potential barriers to upward momentum.

Conversely, support levels at $3.67528, $3.64911, and $3.61840 serve as safety nets, cushioning against declines. The proximity of the current price to the 50-day EMA at $3.76243 and the 200-day EMA at $3.80873 suggests a cautiously bullish outlook.

Overall, Copper’s market direction appears positive as long as it remains above the pivot point, signaling potential for further gains.

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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.