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Key Insights
- Gold prices are stable, oscillating between $2,000 and $2,050 an ounce, as markets await clarity on the Fed’s rate cut decisions.
- Copper prices remain near four-month highs, buoyed by a weak dollar and hopes of further Chinese economic stimulus measures.
- The outlook for both gold and copper is closely tied to the Fed’s policy direction and upcoming economic data releases.
Quick Fundamental Outlook
Gold prices remain stable in the Asian market, fluctuating between $2,000 and $2,050 per ounce, as traders speculate on the Federal Reserve’s interest rate cuts. Despite dovish Fed signals, gold’s gains are capped due to improved risk appetite and skepticism about early rate cuts.
Spot gold rose to $2,036.89, but futures held steady. Copper prices, on the other hand, hover near a four-month high, driven by a weak dollar and stimulus expectations in China. The red metal’s demand remains strong, with futures at $3.9078 a pound.
Both gold and copper’s trends are influenced by the Fed’s policy and economic indicators, with gold benefiting from lower rates and copper’s outlook bolstered by Chinese demand and supply constraints.
Gold Prices Forecast
On December 21, Gold displays a cautiously optimistic trend, with a slight increase to $2,033. Key resistance and pivot points are at $2,044 and $2,065, with potential ceilings at $2,088 and $2,108.
Support levels are found at $2,018, $1,999, and $1,974. The Relative Strength Index (RSI) at 49 suggests a neutral market, while the Moving Average Convergence Divergence (MACD) hints at bearish potential.
Nonetheless, Gold’s price is above the 50-Day EMA of $2,031, indicating a short-term bullish trend. Chart analysis points to a downward trendline and a double top pattern at $2,045, marking critical resistance zones.
A decisive move above $2,044 could initiate an uptrend, making it a crucial level for Gold’s short-term market direction.
Silver Prices Forecast
Silver’s market performance on December 21 reflects a modestly positive trend, with a 0.29% increase to $24.20. The metal is trading above its pivot point of $23.80, facing immediate resistance at $24.22 and potential barriers at $24.63 and $24.91. Support levels are established at $23.52, $23.24, and $22.83, providing crucial benchmarks in the event of a price pullback.
Technical indicators convey a cautiously optimistic outlook. The Relative Strength Index (RSI) stands at 55, suggesting a slightly bullish sentiment without venturing into overbought territory. The Moving Average Convergence Divergence (MACD) at 0.001900, above its signal of 0.128020, indicates potential upward momentum.
Silver’s price movement is above the 50-Day Exponential Moving Average (EMA) of $24.02, reinforcing a short-term bullish trend. Chart patterns show a downward resistance line at $24.25, with robust support around the $24 mark. This scenario points to a bullish trend, particularly if Silver sustains above $24.
In the short term, the market is likely to test resistance levels, with a focus on $24.22. Investors and traders should monitor these key levels to gauge Silver’s market trajectory.
Copper Prices Forecast
Copper’s market on December 21 showcases a slight uptick, with a 0.13% increase to $3.88. This positive movement positions Copper near a pivotal point at $3.93. The metal confronts immediate resistance at $3.98, with further challenges at $4.03 and $4.10. On the downside, support levels are identified at $3.85, $3.78, and $3.73, which could play a crucial role in Copper’s price direction.
The Relative Strength Index (RSI) currently at 49, hovers near the midpoint, indicating a balanced market sentiment without clear signs of overbought or oversold conditions. The Moving Average Convergence Divergence (MACD) shows a value of -0.0031, slightly below its signal of 0.0118, presenting a mixed market outlook.
Notably, Copper’s price is just above the 50-Day Exponential Moving Average (EMA) of $3.87, hinting at a potential bullish trend. However, the presence of a double-top pattern at the $3.93 resistance level suggests the need for cautious optimism. A decisive move above this level could signal a stronger bullish momentum for Copper.
Overall, Copper’s trend is bullish above the $3.87 mark, with expectations of testing higher resistance levels in the near term. Market participants should closely monitor these key technical levels for insights into Copper’s short-term market trajectory.
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This article was originally posted on FX Empire
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