Precious Metals Forecast: Ascending Values Driven by Safe Haven Demand

Key Insights

• Gold’s bullish momentum influenced by U.S. economic indicators and Middle Eastern geopolitical factors.
• Silver shows a bullish trend supported by its trading above key technical indicators.
• Copper’s bearish sentiment emphasized by descending triangle pattern and RSI below 50.

Quick Fundamental Outlook

Gold prices are caught between U.S. economic signals and Middle Eastern geopolitics, with President Biden’s Israel visit eyed closely. While U.S. Treasury yields rise, posing challenges for gold, the ongoing Israel-Hamas conflict initially pushed gold’s value up. Yet, with impending diplomatic interventions, its surge is uncertain.

Gold Prices Forecast

On October 17, the 4-hourly chart indicates that gold (XAU/USD) is exhibiting a bullish trend, trading at $1,923, marking an uptick of roughly 0.18% for Tuesday. Critical price points to note include a pivot at $1,909, resistances at $1,933, $1,949, and $1,964, and support levels situated at $1,897, $1,883, and $1,868.

The Relative Strength Index (RSI) stands at 71, signalling overbought conditions as the RSI surpasses the 70 mark. The 50-day Exponential Moving Average (EMA) is at $1,885, and with gold’s current price being above this EMA, a short-term bullish trend is inferred.

The charts also depict an upward trendline supporting the XAU/USD price near $1,910, further recommending a buying sentiment. In conclusion, the trend for the yellow metal remains bullish as long as the price stays above $1,909, and traders might anticipate gold approaching the $1,933 resistance in the near future.

Silver Prices Forecast

On October 17, the 4-hourly chart showcases Silver (XAG/USD) trading bullishly at $22.69, reflecting a 0.35% rise for the day. Essential price benchmarks include a pivot at $22.37, resistances stationed at $22.83, $23.51, and $24.00, and support zones at $21.82, $21.30, and $20.69.

The Relative Strength Index (RSI) records a value of 65, suggesting a bullish sentiment as the index surpasses the mid-50 mark but hasn’t reached the overbought threshold of 70.

The 50-day Exponential Moving Average (EMA) positions itself at $22.16, with Silver’s current rate hovering above it, indicating a prevailing short-term bullish tendency. The chart pattern elucidates an upward channel, supporting Silver prices around $22.35, further emphasizing a buying inclination.

Conclusively, the momentum for Silver remains bullish provided the price remains above the $22.35 threshold. In the near term, traders could watch Silver nearing the resistance of $22.83.

Copper Prices Forecast

For October 17, the technical outlook for Copper on a 4-hourly chart indicates a bearish sentiment with a current trading price of $3.55, reflecting a decline of approximately 0.85%.

Key levels to watch include a pivot point at $3.61, with immediate resistance at $3.66, and subsequent resistances at $3.70 and $3.74. On the downside, the first line of support is at $3.56, followed by $3.52 and $3.48.

The Relative Strength Index (RSI) reads at 41, suggesting a bearish sentiment as it’s below the 50 mark. The 50-day Exponential Moving Average (EMA) is valued at $3.62, indicating the price is below the EMA, thus a short-term bearish trend.

Chart patterns showcase a descending triangle, hinting at potential bearish momentum especially if the $3.56 support is breached. Overall, the trend for Copper remains bearish below $3.61. In the near term, if the bearish momentum continues, a further decline can be anticipated.

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