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Gold, Silver, Copper Daily Forecast: Powell’s Rate Hints Push Metal Up; Buy Now?

By:
Arslan Ali
Updated: Mar 8, 2024, 06:38 GMT+00:00

Key Points:

  • Gold eyes largest weekly gain in 5 months, buoyed by Powell's rate cut hints.
  • Spot prices soar over 3.5% this week, signaling strong investor anticipation of rate cuts.
  • Dollar's sharp weekly drop enhances gold's appeal, impacting silver and copper forecasts.
Metals Recap

In this article:

Precious Metals Rally on Rate Cut Speculation

Gold is on the brink of its largest weekly gain in five months, closely approaching record highs, buoyed by Federal Reserve Chair Jerome Powell’s hints at potential mid-year rate reductions.

This week alone, gold’s spot prices soared by over 3.5%, marking the most significant weekly uptick since the escalation of the Israel-Hamas conflict in mid-October, poised for a third consecutive weekly rise.

Speculative trading has fueled this surge, but the underlying driver remains the anticipation of forthcoming rate cuts, reinforcing gold’s allure. Meanwhile, the dollar is set for its most considerable weekly decline this year, further enhancing gold’s attractiveness to investors holding other currencies.

Gold Prices Forecast

Gold - Chart
Gold – Chart

On March 8, Gold experienced a slight decrease of 0.11%, trading at $2157.040. Despite this dip, the technical framework suggests a bullish outlook. The day’s pivot point at $2146.02 acts as a foundation for future movements.

Resistance is anticipated at $2168.25, escalating to $2182.32 and $2196.38, indicating potential hurdles for upward momentum. Conversely, support levels are identified at $2127.87, descending to $2114.71 and further to $2098.83, providing a cushion against downward trends.

The 50-Day and 200-Day Exponential Moving Averages, at $2046.87 and $1984.01 respectively, reinforce a bullish sentiment, contingent on maintaining above the pivot.

Silver Prices Forecast

Silver - Chart
Silver – Chart

Silver edged higher by 0.06%, trading at $24.30. The metal’s trading pattern reveals a subtle uptick, anchored by a pivot point at $24.24. This pivot delineates the immediate battleground for bulls and bears. Resistance levels are staged at $24.53, $24.82, and $25.09, each marking a potential ceiling for price ascents.

Conversely, supports are established at $24.01, $23.69, and $23.33, providing floors that could stem any declines. With the 50-Day and 200-Day Exponential Moving Averages at $23.54 and $23.07 respectively, an upward channel is in play.

This technical stance suggests silver remains in a bullish domain above the $24.24 threshold, with a dip below potentially signaling a shift towards a selling trend.

Copper Prices Forecast

Copper - Chart
Copper – Chart

Copper price dipped slightly by 0.09%, trading at $3.92139. This minor setback places it just below the day’s pivot point at $3.93, a critical juncture that delineates potential future movements. Resistance levels are set at $3.96, $3.98, and $4.01, challenging the metal’s upward momentum.

On the downside, support levels at $3.90, $3.87, and $3.83 offer a buffer against further declines. The 50-Day and 200-Day Exponential Moving Averages, at $3.87 and $3.84 respectively, suggest a narrow bullish window.

However, the current position below the pivot hints at a bearish trend, with a break above $3.93 required to reverse this bias.

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

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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