Gold, Silver, Copper Daily Forecast: XAU Eyes $2,050 Amid Rate Cut Speculation

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Published: Mar 1, 2024, 06:45 GMT+00:00

Key Points:

Gold nears breakthrough $2,050, fueled by Fed rate cut optimism; dollar strength limits gains.
Silver, platinum gain modestly amid rate cut hopes; copper dips on China's economic concerns.
Mixed economic signals impact metal forecasts, with gold and silver showing resilience, copper faces headwinds.

Rate Cut Hopes Versus Dollar Strength

Gold prices in Asian trade on Friday hovered near the brink of surpassing the $2,020 to $2,050 range, driven by optimism over potential Federal Reserve rate cuts due to easing inflation. However, the dollar’s resilience capped significant gains, with spot gold steadying at $2,043.64 an ounce. Silver and platinum also saw modest gains.

Meanwhile, copper prices dipped slightly amid mixed economic indicators from China, suggesting a continued contraction in its manufacturing sector.

The mixed outlook on inflation and interest rates, alongside economic data from China, shapes the forecast for precious and industrial metals, highlighting the interplay between macroeconomic factors and commodity prices.

Gold Prices Forecast

Gold – Chart

Gold‘s market price modestly increased by 0.03%, reaching $2044.86, displaying stability within the commodities market. The pivot point stands at $2038.05, indicating key resistance levels at $2050.76, $2065.30, and $2079.03 that could cap upward momentum.

Conversely, support levels are identified at $2025.55, $2016.23, and $2005.35, offering potential bounce points in case of a pullback. The 50-day and 200-day Exponential Moving Averages (EMAs) at $2031.40 and $2026.89, respectively, support a bullish stance above $2038.05.

This analysis suggests that Gold’s trajectory is inclined towards an upward trend, should it sustain above the pivotal $2038 level.

Silver Prices Forecast

Silver – Chart

Silver market showed a positive movement, with a 0.27% rise to $22.73, suggesting a slight yet notable bullish sentiment. The metal’s current trajectory is defined by a pivot point at $22.61, leading to immediate resistance levels at $22.80, $23.00, and $23.19.

These figures indicate potential resistance points for further upward movement. Support levels at $22.29, $22.12, and $21.93 provide a safety net against price retractions.

The 4-hour chart’s bullish breakout from a downward channel, especially above $22.65, coupled with the 50-day EMA at $22.67 and the 200-day EMA at $22.81, underscores a bullish outlook above the $22.60 mark, hinting at continued upward momentum.

Copper Prices Forecast

Copper – Chart

Copper market price slightly declined by 0.02%, standing at $3.84, reflecting a marginal dip in trading momentum. The commodity is currently at a pivot point of $3.84, with resistance levels awaiting at $3.88, $3.91, and $3.94. These thresholds represent potential ceilings for upward price movements.

Conversely, support levels are identified at $3.81, $3.78, and $3.75, which could offer stabilization in case of further declines.

The proximity of the 50-day Exponential Moving Average (EMA) at $3.85 and the 200-day EMA at $3.83 to the current price suggests a balanced market sentiment, with a bullish bias emerging should prices sustain above the $3.84 mark.

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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.