Gold, Silver, Copper Daily Forecast: Red Sea Tensions Influence Value
NEW YORK (December 4) Gold prices reached new highs in Monday’s Asian trading, spurred by expectations of a potential Federal Reserve rate cut by March 2024. This rally is fueled by multiple factors, including easing inflation, weaker labor market data, and less aggressive signals from the Fed.
Additionally, geopolitical tensions, highlighted by an attack in the Red Sea, have bolstered gold’s appeal. Despite Fed Chair Jerome Powell’s stance on keeping US rates high, his recent comments on inflation control and economic stability have influenced market expectations towards a rate pause in December and possible cuts in early 2024.
CME Group’s Fedwatch tool indicates a high likelihood of the Fed maintaining current rates in December, with increasing chances of a subsequent rate reduction.
Gold Prices Forecast
GOLD – Chart
In the commodities market, Gold’s recent movements suggest a cautiously bullish sentiment. As of December 4, the precious metal is trading at $2066, reflecting a slight decline of 0.22%. This movement comes after Gold found support just above the pivot point of $2060 on the 4-hour chart.
Key resistance levels are now set at $2,088, $2,110, and $2,131, with immediate support at $2,047, followed by $2,033 and $2,016. The Relative Strength Index (RSI) at 53 and MACD values (2 crossing above 14) indicate a potential for upward momentum.
Gold’s positioning above its 50-day Exponential Moving Average (EMA) of $2,047 further reinforces a short-term bullish outlook. The overall trend remains bullish above the $2,060 mark, with the expectation that Gold will test higher resistance levels in the coming days.
Gold
Taking a look at the daily chart, gold has violated double top pattern at $2060 level, which is clearly signaling bullish bias among investors and strong upside potential.
Silver Prices Forecast
Silver – Chart
Silver’s market trajectory on December 4 shows a notable shift, as the metal’s price falls to $25.15, marking a 1.29% decline. This downturn in silver prices occurs as the metal hovers around its pivot point of $25.08.
Immediate resistance levels are now charted at $25.40, $25.92, and $26.26, while key supports lie at $24.85, $24.53, and $24.14. The Relative Strength Index (RSI) at 45, slightly below the midline, and a MACD of -0.040 falling below its signal of 0.180, indicate bearish sentiment. A bearish engulfing candle coupled with an upward channel breakout in the 4-hour chart further suggests a potential downtrend.
The current price lingering below the 50-day EMA of $25.08 reaffirms this bearish outlook. The overall trend for silver is currently bearish, particularly below the $25.45 level, with a short-term focus on testing lower support levels.
Copper Prices Forecast
Copper – Chart
Copper, a key barometer for global economic health, has experienced a downturn in its price on December 4, currently trading at $3.86, marking a decrease of 1.44%. This movement positions copper just above its pivotal point of $3.85 on the 4-hour chart, indicating a delicate balance in market sentiment.
Immediate resistance levels are set at $3.89, $3.93, and $3.98, while the supports are established at $3.81, $3.79, and $3.74. The Relative Strength Index (RSI) at 45 suggests a neutral to bearish sentiment, while the 50-day Exponential Moving Average (EMA) at $3.85 acts as a critical juncture, suggesting a potential shift in trend.
Notably, copper is retesting the previously violated triple top pattern at $3.85, which now serves as a support level, potentially indicating a bullish turnaround if sustained above this threshold. The overall trend for copper appears cautiously bullish above $3.85, with a short-term focus on testing higher resistance levels.
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