Technical Update - Metals facing larger corrections. Here are the levels to which Gold, Silver, Platinum and Copper can sell off Technical Update - Metals facing larger corrections. Here are the levels to which Gold, Silver, Platinum and Copper can sell off Technical Update - Metals facing larger corrections. Here are the levels to which Gold, Silver, Platinum and Copper can sell off

Technical Update - Metals facing larger corrections. Here are the levels to which Gold, Silver, Platinum and Copper can sell off

Commodities 4 minutes to read
Kim Cramer Larsson

Technical Analyst, Saxo Bank

  • Gold holding on above key support. If broken, sell-off to 2,220 in the cards
  • Silver double top pattern unfolding with bearish target to 28.50, maybe even 26
  • Platinum testing key support around 1,015. Bearish move can push it to 974
  • Copper correction eyeing support at 446. Will it hold?

Gold XAUUSD has now several times been testing the key strong support at 2,326 and dipped down to the 0.786 retracement at 2,314 on one occasion. If closing below 2,314, a swift sell-off down to support at around 2,277 is likely. If taking out that support, there is further downside potential to 2,222–2,195.

The strength indicator RSI is still in positive sentiment but has been showing divergence for quite some time, indicating uptrend exhaustion for gold and a possible correction.

For gold to resume uptrend, a daily close above 2,365 is required.

Double top pattern? One can argue that gold is forming a double top pattern, an ugly pattern, where the first peak is not that distinct and significantly lower than the second top, hurting potential performance. A daily close below 2,277 is required for confirmation.

Source all charts and data: Saxo Group

Silver XAGUSD has formed a double top pattern.
Potential downside target: As a rule of thumb, the price should come back down to the base prior to the build-up, i.e., at around 26. However, the target performance often reaches less than that. Measuring the distance from the top to the valley of the double top pattern and subtracting that from the breakout price, i.e., the valley, indicates a downside potential to 27.57, as indicated by the two vertical arrows.

However, a sell-off could be cut even more short; the 0.618 retracement of the April to May uptrend is at 28.50. Almost exactly the same price as the 1.618 projection of the double top pattern (28.52).

If silver is closing back above the right top, i.e., above 32.30, the uptrend is likely to resume, and the pattern is busted. If closing back above the valley, i.e., back above 30.05, the bearish scenario is busted.

Platinum XPTUSD got hit by heavy selling after reaching the 0.618 retracement at 1,066 and is currently trading around the support area 1,015–1,000.
If closing below 1,015, further selling could be seen down to the 0.618 retracement at 974.50. The 55 daily moving average is adding to the support.

If closing back above 1,015, the uptrend is likely to resume. The RSI is still showing positive sentiment with no divergence, indicating platinum is likely to trade higher after a correction.
However, if RSI is closing below 40, that potential bullish scenario is cancelled.

Copper is breaking below the 0.618 retracement at 460.80 and seems destined to drop lower to the stronger support at around 446.

If RSI, which is still showing positive sentiment but also divergence, is closing below the 40 threshold, the bearish move is likely to continue.
A daily close below 446 could fuel further selling pressure down to the 0.618 retracement at 424.40.

If closing back above 470, copper is likely to resume uptrend


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 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

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.