Technical Update - Gold and Silver testing key resistance after strong rebound. Gold/Silver ratio unwinding rising wedge pattern Technical Update - Gold and Silver testing key resistance after strong rebound. Gold/Silver ratio unwinding rising wedge pattern Technical Update - Gold and Silver testing key resistance after strong rebound. Gold/Silver ratio unwinding rising wedge pattern

Technical Update - Gold and Silver testing key resistance after strong rebound. Gold/Silver ratio unwinding rising wedge pattern

Commodities 4 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Gold Spot XAUUSD bounced from key support at 1,6800 and is now testing key resistance at 1,780. 1,780 was the key support for months but was broken by heavy selling in early June that took XAUUSD to test support at 1,680.
XAUUSD is also testing medium-term falling trend line. A close above both is likely to extend the bounce to a round 1,825-1,850. 
However, on daily RSI is still below 60 threshold and if failing to close above i.e. RSI is rejected at 60 the down trend will resume for another test of 1,680 key support. Today and next couple of days will be decisive.

Source: Saxo Group
Source: Saxo Group

XAGUSD has bounced strongly from support at 18.35 and is now testing resistance at 20.45. At the time of writing the daily RSI is above 60 and if it closes the day above the bounce is likely to be extended to 21.48 i.e. the 0.764 retracement of the June sell-off. Some resistance at the 0.618 retracement at 20.84.
IF XAGUSD drops back below 19.84 bear trend is likely to resume.

Source: Saxo Group
Source: Saxo Group

XAUXAG Gold/Silver ratio has taken out support at 89.57 AND the lower rising trend line is what seems like a rising wedge pattern. Pausing at 0.618 retracement where a bounce from is not unlikely. A bounce that could take XAUXAG to test the trendline from beneath. 
If that scenario plays out and XAUXAG gets rejected at the trendline the sell-off is to resume, but if XAUXAG closes above the trendline the rising wedge like pattern is busted and XAUXAG sell-off was merely just a correction in a broader uptrend.
If XAUXAG drops below 86.35 next support is the 0.764 retracement at around 85. Key strong support at 82.26

However, the longer-term uptrend will still be in plays if XAUXAG stays above 82.25. Weekly RSI is still showing positive sentiment with no divergence indicating future higher levels.

Source: Saxo Group
Source: Saxo Group

The Saxo 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 is not intended to and does not change or expand on this. 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 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 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 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 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 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 (
- Full disclaimer (

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo or its affiliates.

Saxo Capital Markets HK Limited
19th Floor
Shanghai Commercial Bank Tower
12 Queen’s Road Central
Hong Kong

Contact Saxo

Select region

Hong Kong S.A.R
Hong Kong S.A.R

Saxo Capital Markets HK is a company authorised and regulated by the Securities and Futures Commission of Hong Kong. Saxo Capital Markets HK Limited holds a Type 1 Regulated Activity (Dealing in securities); Type 2 Regulated Activity (Dealing in Futures Contract); Type 3 Regulated Activity (Leveraged foreign exchange trading); Type 4 Regulated Activity (Advising on securities) and Type 9 Regulated Activity (Asset Management) licenses (CE No. AVD061). Registered address: 19th Floor, Shanghai Commercial Bank Tower, 12 Queen’s Road Central, Hong Kong

By clicking on certain links on this site, you are aware and agree to leave the website of Saxo Capital Markets, proceed on to the linked site managed by Saxo Group and where you will be subject to the terms of that linked site.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the US and other countries. AppStore is a service mark of Apple Inc.

Please note that the information on this site and any product and services we offer are not targeted at investors residing in the United States and Japan, and are not intended for distribution to, or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Please click here to view our full disclaimer.