Gold futures fell in Asian session on Friday, affected by market volatility. On the New York Mercantile Exchange, February gold futures were trading at $2,743.36 per ounce, down 0.27%. This decline reflects expected market volatility due to global economic factors. Prices had previously ranged during the session at $2,742.80 per ounce, reflecting further pressure on prices.
Gold, which is considered a safe haven for investors in times of economic volatility, is currently facing challenges due to forces affecting financial markets. Prices are witnessing levels of volatility, with some analysts expecting gold to find support at $2,672.00 per ounce. Conversely, the precious metal will face strong resistance at $2,757.90 per ounce.
Despite the decline in gold, other commodity markets continue to record mixed movements. Meanwhile, the US dollar has appreciated. The dollar index, which measures the performance of the US currency against a basket of six major currencies, rose slightly by 0.08% to trade at $108.90.
Factors affecting gold prices
One of the factors that affect gold movements in general is the fluctuations of the US currency, as gold is inversely related to the dollar. Gold prices usually rise when the value of the US dollar declines, and vice versa when the dollar rises. Investors in financial markets closely follow these movements to determine future trends in gold prices.
Monetary policy developments in major economies also affect the prices of the yellow metal. In the event that interest rates are increased by central banks, especially the US Federal Reserve, this usually causes gold prices to decline as it becomes less profitable to hold gold compared to other assets such as bonds. In cases of falling interest rates or concerns about inflation, demand for gold increases as a hedging tool.
The impact of economic factors on silver and copper
In addition, geopolitical concerns play an important role in shaping market trends. The more global fears of conflicts or volatility in financial markets increase, the more demand for gold as a safe haven.
Looking at other metals, the price of silver for March decreased by 0.56% to trade at $31.55 per ounce. Despite the decline, there is still interest in silver in the global market, as this metal is mainly used in the electrical and electronic industries. With the increase in investments in the technology sectors, there is likely to be a continued demand for silver in the future.
As for copper, it witnessed an improvement of 0.61%, reaching $4.46 per pound. Copper plays a crucial role in manufacturing and infrastructure industries, directly reflecting the activity of the global economy. Demand for copper increases with the increase in industrial activity. The current rise in the price of copper is due to positive expectations about demand from the construction markets and other industries. Future Prospects for Gold, Silver and Copper
Despite the declines witnessed by gold and silver futures, there are expectations of a return to stability in the precious metals markets. Gold is expected to witness further slight declines in the near future, but it is likely to stabilize at certain support levels, such as $2,672 per ounce, a level that some analysts see as suitable for long-term investment.
On the other hand, if the US dollar continues to rise, gold may face difficulty in returning to levels above $2,757 per ounce. Therefore, investors are awaiting the US monetary policy directions, especially in light of the increasing global economic concerns.
As for silver and copper, their performance depends on the movement of industrial demand and global economic developments.
Analysts and investors’ expectations for the precious metals markets
Precious metals markets, especially gold, silver and copper, are subject to varying expectations based on global economic developments and monetary policies in major economies. Many analysts suggest that metals markets will continue to fluctuate in the short term, but that relative stability may emerge in the near future.
Gold Forecast
As for gold, analysts expect the yellow metal to experience further price volatility due to factors affecting the markets, such as the movements of the US dollar and monetary policies. If the US dollar continues to rise, gold may struggle to break through new resistance levels. However, gold trades within a narrow range near key support levels like $2,672 per ounce, as investors target this level for market entry. Major global economic fluctuations or a financial crisis typically drive gold to rebound quickly. If the US dollar declines or global economic concerns increase, demand for gold as a safe haven may increase, boosting its prices .
Silver, on the other hand, is more industrially driven than gold. Demand for silver in many industries, such as electronics and renewable energy, could positively impact the price of the metal. However, if gold prices continue to decline, silver could also see slight declines in the short term.
On the other hand, if investments in clean energy rise or industrial demand increases, these factors could positively impact silver.
Copper Forecast
Copper, which is a key metal in the construction and technology industries, also faces promising growth opportunities. With the global economy expected to recover in the coming years, demand for copper could rise significantly. Construction projects and new technology, especially in the renewable energy sector, are among the biggest drivers that could contribute to increased demand for copper.
Factors Influencing the Forecast
Central banks’ monetary policies are one of the most important factors influencing the movements of precious metals. If central banks, such as the US Federal Reserve, decide to raise interest rates, metals such as gold could see a decline in prices as it increases the attractiveness of other assets. Lower interest rates or the adoption of stimulus policies to support the economy directly boost the value of precious metals, especially XAU.
Global economic factors will continue to influence gold, silver, and copper markets. These metals will likely experience increased volatility in the short term, but analysts anticipate greater stability in the long term. Investors are preparing to monitor the movements of the US dollar and global economic policies in the coming months.
