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Technical Technical Technical

Technical Update - Gold breaking key support. Silver closing in support. Gold/Silver ratio in short term exhaustion move

Commodities 5 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

XAUUSD Gold spot has taken out key support at $1,721. If a daily close below next major key support is at 1,670.

Source: Saxo Group

Silver XAGUSD spot closing in on support at around $18.38. If broken next key support is at around 16.95.

Source: Saxo Group

XAUXAG Gold/Silver ratio has reached 1.618 Fibonacci Projection AND roughly the peak to trough of the triangle like pattern XAUXAG broke bullish out of a couple of weeks ago. Illustrated by the two vertical arrows.
There is divergence on RSI and with the long upper shadows on the daily candle indicates XAUXAG has reached short term exhaustion and a downwards correction is likely

  

Source: Saxo Group
XAUXAG is testing the upper rising trend line in the medium-term rising channel. Weekly chart. There is no divergence on RSI indicating higher levels are to be expected. After a likely minor correction. 
Source: Saxo Group

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