Gold, Silver, Copper Forecast: Metals Eye Fed’s Move, China PMI in Focus

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Published: Feb 26, 2024, 06:44 GMT+00:00

Key Points:

Gold's response to Fed's steady rates tempers amid global economic uncertainties and geopolitical tensions.
Upcoming U.S. PCE data pivotal for gold; higher Fed rates could dampen its appeal as a non-yielding asset.
Copper eyes China's PMI for recovery signals; silver and platinum adjust to Fed's rate strategy and global cues.

Metals React to Fed’s Rate Stance and Global Economic Signals

Gold prices dipped in response to growing concerns over sustained high U.S. interest rates, ahead of crucial economic data releases. Despite a lack of significant movement due to Fed officials’ hints at maintaining current rate levels, gold’s safe-haven appeal moderated losses amid recession fears in Japan and the UK, and Middle East tensions.

The focus shifts to the upcoming U.S. PCE price index, a critical inflation indicator, with expectations set for continued rate rigidity from the Fed. This stance typically pressures gold by elevating the cost of holding non-yielding assets.

Silver and platinum also saw declines, while copper prices dropped slightly, awaiting Chinese economic recovery signals, with upcoming PMI data and Xi Jinping’s emphasis on logistics and industrial activity renewal hinting at potential demand shifts.

Gold Prices Forecast

Gold – Chart

Gold‘s subtle retreat to $2,032.22, down 0.16%, prompts a critical assessment of its technical posture. The 4-hour chart reveals a pivot at $2,029.80, suggesting a tug of war between bulls and bears.

Resistance levels at $2,039.47, $2,048.31, and $2,059.16 delineate the barriers for upward momentum. Conversely, support at $2,016.22, followed by $2,005.35 and $1,989.35, provides cushions against further declines.

The proximity of the 50-day and 200-day Exponential Moving Averages (EMAs) at $2,022.64 and $2,024.43, respectively, to the current price underscores a balanced market.

The overall trend leans bullish above $2,025, signaling potential for an ascent if this threshold sustains.

Silver Prices Forecast

Silver – Chart

Silver‘s market valuation experienced a modest decline, trading at $22.83, marking a 0.51% decrease over the last session. This movement positions silver just below the pivotal $22.98 mark, indicating a slight bearish sentiment in the near term.

Resistance levels are identified incrementally at $23.17, $23.33, and $23.50, suggesting potential hurdles for upward price movements. Conversely, silver finds immediate support at $22.71, with subsequent levels at $22.56 and $22.33, offering floors to counteract further dips.

The 50-day and 200-day Exponential Moving Averages, sitting at $22.84 and $22.88 respectively, hover around the current price, reflecting a market in search of direction. The technical outlook deems silver bearish below the $22.98 pivot point, signaling caution for traders eyeing near-term positions.

Copper Prices Forecast

Copper Chart

Copper‘s market dynamics witnessed a slight downturn, trading at $3.87, reflecting a 0.28% decrease within a 4-hour chart timeframe. Positioned just below its pivot point at $3.89, copper’s current stance suggests a bearish sentiment unless it surpasses this threshold.

Key resistance levels are staged at $3.91, $3.94, and $3.97, marking potential points of contention for upward movement. Conversely, support levels are identified at $3.87, $3.84, and $3.81, providing a safety net against further declines.

The 50-day and 200-day Exponential Moving Averages, at $3.85 and $3.82 respectively, slightly underpin the current price, indicating a market hovering near a decision point.

The prevailing sentiment deems the metal bearish below the $3.89 pivot, hinting at cautious trading ahead.

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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.