Technical Update - Metals finding support and rebounding: Gold, Silver, Platinum and Copper Technical Update - Metals finding support and rebounding: Gold, Silver, Platinum and Copper Technical Update - Metals finding support and rebounding: Gold, Silver, Platinum and Copper

Technical Update - Metals finding support and rebounding: Gold, Silver, Platinum and Copper

Commodities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

  • Metals have been hit with a swift bearish correction but have not found some support
  • Silver is once again leading the direction with a rebound and Platinum is following
  • Gold and Copper with fairly muted response but could just be a question of time
  • Keep an eye on support levels for continued correction
  • Europe and US metals and mining ETFs listed in the article

Gold (XAUUSD) seems to be bouncing from the cloud (shaded area—the Ichimoku Cloud) between the 0.618 and the 0.786 retracement, and the minor support at around 2,326. A dip down to the 0.786 retracement at 2,314 could still occur before rebounding.

If breaking above 2,385, the uptrend is likely to resume with a push towards previous peak levels and possibly to 2,500. The 55-day moving average will add to the bullish support.

A close below 2,277 confirms a downtrend.

The strength indicator RSI is showing divergence, indicating the uptrend is in exhaustion mode. However, a close back above the 60 threshold and above the upper falling trendline would be a strong indication of another bullish push in gold

Source all charts and data: Saxo Group

Silver (XAGUSD) is bouncing from the 0.382 retracement at USD 30 and is likely to resume its uptrend. Daily RSI is still showing positive sentiment with no divergence, indicating silver could push to levels above 32.52. If it takes out 32.52, there is no strong resistance until around 34.40–35.40 (see weekly chart).

A break below 30 could continue the correction down to the 0.618 retracement at 28.50

Platinum (XPTUSD) correction has bounced from the upper support area 1,015–1,007 and seems to be resuming its uptrend. The uptrend has no resistance until around 1,130 (see weekly chart), which is close to the 1.382 projection of the correction from last week at 1,128.50.
The 2.00 projection is at 1,179, within a few cents of the 2022 peak at 1,182, which is not unlikely to be reached.

If platinum drops below 1,015, it is likely to be hit by another sell-off down to the 0.618 retracement at 974.50.

Positive RSI sentiment with no divergence supports the bullish scenario of a move to 1,130

Copper has found support at the 0.618 retracement of the early May bullish move at 474.50. A bounce could be seen. However, if it breaks below 474, the correction is likely to continue to the 0.786 retracement at 462.25 or to the 0.382 retracement of the entire uptrend since February at 460.

There is minor divergence on the RSI, but if RSI closes back above the 60 threshold, copper is likely to rebound further. A copper close above 492 is likely to confirm a strong rebound that could take the metal to 510.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
Full disclaimer (https://www.home.saxo/legal/saxoselect-disclaimer/disclaimer)

Saxo Bank (Schweiz) AG
The Circle 38
CH-8058
Zürich-Flughafen
Switzerland

Contact Saxo

Select region

Switzerland
Switzerland

All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) Ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law. 

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.