Technical Update - Gold resuming uptrend, to 2,300? Silver tagging along, key resistance at 26 Technical Update - Gold resuming uptrend, to 2,300? Silver tagging along, key resistance at 26 Technical Update - Gold resuming uptrend, to 2,300? Silver tagging along, key resistance at 26

Technical Update - Gold resuming uptrend, to 2,300? Silver tagging along, key resistance at 26

Commodities 3 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

  • Gold (XAUUSD) has shown a smaller correction than expected, resuming its uptrend after the recent Federal Reserve announcement. With various Fibonacci projections suggesting potential targets, the metal's price could see further increases in both the short and medium term

     

  • Silver's approach towards the 26.00-26.75 resistance area is a key development to watch

Gold (XAUUSD) experienced a lesser correction than anticipated, swiftly resuming its bullish trend following the Federal Reserve's latest announcement.
This morning, gold nearly reached the 1.618 Fibonacci projection of the correction at 2,225. In the short term, a move towards the 2.00 projection of the correction at 2,244 and the 1.764 projection of the December-February range at 2,256 appears probable

Source all charts and data: Saxo Group

Gold and Fibonacci 
Diving deeper into Fibonacci analysis (sorry for getting a bit technical now going full Fibonacci nerdy - Fibonacci Extension coloured red and illustrated by the balck arrows).), the 0.236 extension aligns with the previous peak at 2,195, and the 0.382 extension is close to the 1.618 projection of the correction at 2,226.
The 0.618 Fibonacci extension suggests a potential target of 2,276 

The RSI's positive sentiment underpins the bullish trend, which could propel gold towards 2,300 in the medium term. Specific targets include the 0.786 extension at 2,311 and the 1.476 projection at 2,287 on the weekly chart.

To reverse this bullish outlook, gold would need to close below 2,146.

Silver (XAGUSD) is on an bullish trend, aiming for a substantial resistance area between 26.00 and 26.75. Despite this bullish movement, silver is trailing behind gold, and the current flatness of the RSI indicator does not provide a strong conviction for the trend's continuation. Investors should brace for a potential correction from around the 26.00 resistance level.

A daily close below 24.60 would challenge the bullish perspective, indicating a possible shift in the market sentiment or trend.

Conversely, a weekly close above the 26.00 mark would affirm a bullish medium-term trend for silver, suggesting further upside potential

Disclaimer

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 (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-hk/legal/disclaimer/saxo-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 Limited (“Saxo”) is a company authorised and regulated by the Securities and Futures Commission of Hong Kong. Saxo 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.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products may result in your losses exceeding your initial deposits. Saxo does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo does not take into account an individual’s needs, objectives or financial situation. Please click here to view the relevant risk disclosure statements.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-hk/about-us/awards.

The information or the products and services referred to on this site may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and services offered on this website are not directed at, or intended for distribution to or use by, any person or entity residing in the United States and Japan. Please click here to view our full disclaimer.

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