Gold, Silver, Copper Forecast: Up on Stimulus Bets, Gold Eyes $2040 Mark?

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Published: Feb 22, 2024, 06:27 GMT+00:00

Key Points:

Gold edges up 0.14%, reflecting caution as Fed hints at sustained high rates; trading within $2,000-$2,050.
Silver gains 0.32%, platinum and copper rebound amid economic stimulus hopes and global fiscal policy shifts.
Copper experiences a slight decline of 0.09%, eyes on China for further stimulus amid three years of sluggish growth.

Gold Stabilizes Amid Rate Hike Signals; Silver, Platinum, and Copper Await Economic Cues

Gold prices saw a modest increase in Asian markets, reflecting a cautious stance amid Federal Reserve signals suggesting sustained high U.S. interest rates.

Despite a dip in the dollar, gold’s gains remained constrained within the $2,000 to $2,050 range, hindered by expectations of persistent rate highs but supported by global economic concerns, with Japan and the UK facing recessions.

Spot gold and futures experienced slight gains. The Fed’s latest minutes and officials’ comments have tempered rate cut expectations, impacting gold’s appeal due to the higher opportunity cost.

Meanwhile, silver and platinum rebounded from previous losses, and copper prices stabilized amid anticipation of further Chinese economic stimulus, following a period of sluggish growth.

This mixed outlook underscores gold’s potential resilience to rate changes, silver and platinum’s recovery attempts, and copper’s dependency on China’s fiscal policies.

Gold Prices Forecast

Gold – Chart

On February 22, gold witnessed a marginal gain of 0.14%, trading at $2028.87. This movement positions the precious metal slightly above its pivot point of $2024.80, suggesting a bullish sentiment. Key resistance levels are identified at $2038.75, $2048.04, and $2059.16, indicating potential areas of price contention.

Conversely, support levels are established at $2010.78, $2000.45, and $1988.68, which may halt downward movements. The 50-day Exponential Moving Average (EMA) at $2019.29 and the 200-day EMA at $2024.01 reinforce the positive outlook.

Consequently, Gold’s trend is considered bullish as long as it remains above the $2024.80 threshold, hinting at sustained upward momentum.

Silver Prices Forecast

Silver – Chart

Silver advanced by 0.32%, trading at $22.96. This increment places Silver just above its pivot point of $22.90, indicating an optimistic market stance. Resistance levels are mapped out at $23.14, $23.33, and $23.50, which could challenge upward price action.

On the downside, support is pegged at $22.72, $22.53, and $22.33, serving as potential floors for price corrections. The 50-day Exponential Moving Average (EMA) at $22.86 and the 200-day EMA at $22.89 closely align with the current price, reinforcing a bullish outlook.

Given these metrics, Silver’s trajectory is bullish as long as it sustains above the $22.90 mark, suggesting a positive momentum continuation.

Copper Prices Forecast

Copper Chart

Copper slightly declined by 0.09%, trading at $3.88. Despite the dip, it hovers above its pivot point of $3.86, hinting at underlying bullish sentiments. Resistance levels are identified at $3.91, $3.94, and $3.96, presenting potential ceilings for price advances.

Conversely, support is found at $3.82, $3.78, and $3.74, which could offer stabilization points for any retracements. The 50-day and 200-day Exponential Moving Averages (EMAs) at $3.82 and $3.81, respectively, alongside a symmetrical triangle breakout at $3.80, signal a strong buying trend.

Therefore, Copper’s market outlook is bullish as long as prices remain above the $3.86 threshold, suggesting an anticipatory stance for further price ascensions.

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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.