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Gold, Silver, Copper Daily Forecast: Red Sea Tensions Influence Value

By:
Arslan Ali

In Monday's trading, Gold prices soared on Fed rate cut expectations, while Silver and Copper faced varied sentiment amidst geopolitical tensions.

Gold, Silver, Copper Daily Forecast: Red Sea Tensions Influence Value

In this article:

Key Insights

  • Gold prices hit record highs in Asia, fueled by Fed rate cut speculations.
  • Factors driving gold: easing inflation, weak labor data, and Fed signals.
  • Red Sea attack heightens geopolitical tensions, boosting gold demand.
  • Powell hints at US rate stability; Fed may pause hikes in December.
  • CME Group: High chance Fed holds rates in December, may cut later.

Gold Prices Forecast

GOLD - Chart
GOLD – Chart

In the commodities market, Gold’s recent movements suggest a cautiously bullish sentiment. As of December 4, the precious metal is trading at $2066, reflecting a slight decline of 0.22%. This movement comes after Gold found support just above the pivot point of $2060 on the 4-hour chart.

Key resistance levels are now set at $2,088, $2,110, and $2,131, with immediate support at $2,047, followed by $2,033 and $2,016. The Relative Strength Index (RSI) at 53 and MACD values (2 crossing above 14) indicate a potential for upward momentum.

Gold’s positioning above its 50-day Exponential Moving Average (EMA) of $2,047 further reinforces a short-term bullish outlook. The overall trend remains bullish above the $2,060 mark, with the expectation that Gold will test higher resistance levels in the coming days.

Gold
Gold

Taking a look at the daily chart, gold has violated double top pattern at $2060 level, which is clearly signaling bullish bias among investors and strong upside potential.

Silver Prices Forecast

Silver - Chart
Silver – Chart

Silver’s market trajectory on December 4 shows a notable shift, as the metal’s price falls to $25.15, marking a 1.29% decline. This downturn in silver prices occurs as the metal hovers around its pivot point of $25.08.

Immediate resistance levels are now charted at $25.40, $25.92, and $26.26, while key supports lie at $24.85, $24.53, and $24.14. The Relative Strength Index (RSI) at 45, slightly below the midline, and a MACD of -0.040 falling below its signal of 0.180, indicate bearish sentiment. A bearish engulfing candle coupled with an upward channel breakout in the 4-hour chart further suggests a potential downtrend.

The current price lingering below the 50-day EMA of $25.08 reaffirms this bearish outlook. The overall trend for silver is currently bearish, particularly below the $25.45 level, with a short-term focus on testing lower support levels.

Copper Prices Forecast

Copper - Chart
Copper – Chart

Copper, a key barometer for global economic health, has experienced a downturn in its price on December 4, currently trading at $3.86, marking a decrease of 1.44%. This movement positions copper just above its pivotal point of $3.85 on the 4-hour chart, indicating a delicate balance in market sentiment.

Immediate resistance levels are set at $3.89, $3.93, and $3.98, while the supports are established at $3.81, $3.79, and $3.74. The Relative Strength Index (RSI) at 45 suggests a neutral to bearish sentiment, while the 50-day Exponential Moving Average (EMA) at $3.85 acts as a critical juncture, suggesting a potential shift in trend.

Notably, copper is retesting the previously violated triple top pattern at $3.85, which now serves as a support level, potentially indicating a bullish turnaround if sustained above this threshold. The overall trend for copper appears cautiously bullish above $3.85, with a short-term focus on testing higher resistance levels.

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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