Gold, Silver, Copper Forecast: Resilience Amid Rate Hikes, China Optimism

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Updated: Feb 23, 2024, 06:50 UTC

Key Points:

Gold's recovery hints at resilience, with a slight 0.08% increase amid high rate expectations.
Silver's modest gain faces resistance, reflecting a cautious market outlook on Fed's stance.
Copper's dip contrasts with China's economic optimism, spotlighting global economic influences on metals.

Precious Metals React to Fed Rate Outlook and Global Economic Cues

Gold, Silver, and Copper prices displayed marginal movements as market sentiment shifted towards the expectation of prolonged higher interest rates by the Federal Reserve. Gold’s slight weekly gain is part of a recovery effort after significant losses, constrained by the enduring strength of the dollar and Treasury yields. Silver and Platinum saw declines over the week, with Silver dropping 3.2%.

Conversely, Copper futures noted a modest increase, buoyed by optimism towards China’s economic measures and spending surge during the Lunar New Year.

Fed officials, including Governor Christopher Waller, reinforced a cautious stance towards rate cuts, emphasizing the need to address persistent inflation, thus impacting the precious metals market by fostering expectations of sustained high rates.

Gold Prices Forecast

Gold – Chart

Gold price slightly ascended to $2026.030, marking a 0.08% increase in the last 24 hours. The precious metal finds its pivot point at $2020.97, suggesting a cautiously optimistic market sentiment. Resistance levels are delineated at $2035.10, $2044.63, and $2059.16, indicating potential hurdles for upward movement.

Conversely, support is established at $2010.78, followed by stronger levels at $2000.45 and $1988.68, which could offer a safety net against declines. The 50-day and 200-day Exponential Moving Averages, at $2020.72 and $2024.12 respectively, reinforce gold’s stability.

The symmetrical triangle pattern observed suggests consolidation, with a bullish trend anticipated above the $2020 mark.

Silver Prices Forecast

Silver – Chart

Silver‘s market value slightly increased to $22.78, demonstrating a growth of 0.13% over the past 24 hours. The precious metal’s technical analysis reveals a pivot point at $22.91, indicating a critical juncture for future price movements.

Resistance levels are set at $23.14, $23.33, and $23.50, suggesting areas where selling pressure might intensify. Support levels are found at $22.72, $22.53, and $22.33, offering potential bounce-back points for the metal. The 50-day and 200-day Exponential Moving Averages, at $22.85 and $22.89 respectively, hint at a near equilibrium state.

Should silver surpass the $22.91 mark, a bullish trend could emerge, otherwise, a bearish sentiment is likely to prevail, cautioning investors of potential sell-offs ahead.

Copper Prices Forecast

Copper Chart

Copper‘s price experienced a slight decline, currently trading at $3.90, down by 0.25%. The metal’s pivot point is identified at $3.91, serving as a key indicator for future market direction. Resistance levels are positioned at $3.93, $3.96, and $3.98, marking potential hurdles for upward price movements.

Conversely, support can be found at $3.88, followed by lower thresholds at $3.85 and $3.82, which may offer relief against further declines.

The 50-day and 200-day Exponential Moving Averages, at $3.84 and $3.82 respectively, suggest a slight bullish undertone, yet the current market stance is bearish below the pivot point of $3.91, indicating caution among traders.

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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.