Technical Technical Technical

Technical Update - Silver collapsing. Gold still hanging on above key support, but for how long?

Commodities 5 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank Group

Gold XAUUSD spot is close to test key support at 1,780. If Gold closes the day below 1,780 is has confirmed down trend on both daily and weekly chart and could drop to 1,670 over the summer.
To reverse this scenario a minimum requirement is to close above 1,858

Source: Saxo Group
Source: Saxo Group

Silver XAGUSD is falling off a cliff breaking below 20.45 thereby confirming downtrend. A trend that is likely to take Silver 0.618 retracement at around 18.39. RSI below 40 supports the bearish outlook

Source: Saxo Group
Gold/Silver XAUXAG  ratio is going ballistic with no strong resistance levels in the horizon. XAUXAG is likely to reach 1.618 projection of the Triangle it broke out of about a week ago, i.e. a target of 92.95. However, it could continue further than that. If we calculate the distance from the peak to trough in the triangle and add it to the break out price we get approx.. 93.92 i.e. the 1.764 Projection
Source: Saxo Group

However, since there is no strong resistance levels XAUXAG can go higher. 95.48 is not unlikely . The ratio has even broken bullish out of the rising channel underlining the strength of the uptrend. To reverse that scenario a close below 82.30 is needed.

Source: Saxo Group

 

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