Technical Update - Can Copper break key resistance? Silver taking off leaving Gold in the dust. Other precious metals in uptrend

Technical Update - Can Copper break key resistance? Silver taking off leaving Gold in the dust. Other precious metals in uptrend

Commodities 5 minutes to read
KCL
Kim Cramer Larsson

Technical Analyst, Saxo Bank

Summary:  In this Metals analysis: Copper, Gold, Silver, Gold/Silver ratio, Platinum and Palladium


359.70 is the key resistance Copper needs to close above to confirm uptrend. An uptrend that could take Copper to the 0.618 retracement around 400. However, the steep declining 55 SMA will provide resistance meaning it probably won’t be s moth rise.
If Copper fails to confirm uptrend and sellers regain control, downtrend will resume with a close below 341.60. First indication of that scenario to play out is likely to be RSI breaking below its rising trendline

Source: Saxo Group

Gold XAUUSD is struggling to get above the falling trendline and the 55 SMA. XAUUSD has closed above key resistance at 1,780 but doesn’t seem to be able to get further traction. However, XAUUSD has closed above upper Bollinger bands which are expanding indicating foundation for an uptrend. An uptrend that is likely to move to the 200 and 100 SMA’s but could shoot up to the key resistance at around 1,876.
If XAUUSD drops back below 1,754 the trend has reversed a 1,680 support is likely to come back in play.


Source: Saxo Group

Silver XAGUSD closed yesterday above key resistance at 20.45. Combined with RSI above 60 uptrend is confirmed. An uptrend that is likely to take XAGUSD to the 0.764 retracement at 21.48. Minor resistance at the 0.618 retracement but could have potential to test key strong resistance at around 22.51.
To reverse this bullish scenario a close below 19.50 is needed

Source: Saxo Group

Gold/Silver XAUXAG ratio: It looks like Silver will outperform Gold. Hovering around the 0.618 retracement the short-term trend is down. Next support at around 85 but a drop to around 82.25 is not unlikely. To reverse the trend a close above 90.26 is needed.

Source: Saxo Group

Platinum XPTUSD is trading in a tight rising channel. RSI above 60 and no divergence indicates higher levels are likely. Resistance at 956 and 1,035.

Source: Saxo Group

Palladium is trading in a slightly rising channel. Resistance at around 2,307 and strong resistance at around 2,465. If we see a close below 1,983 lower rising trendline is likely to be tested but June lows at around 1,765 is not unlikely to reached too.
There is minor divergence on RSI (last peak is lower than July peak) However, RSI is forming a Ascending triangle like pattern. Breakout could be a strong indication of direction.

Source: Saxo Group

Quarterly Outlook

01 /

  • Upending the global order at blinding speed

    Quarterly Outlook

    Upending the global order at blinding speed

    John J. Hardy

    Global Head of Macro Strategy

    We are witnessing a once-in-a-lifetime shredding of the global order. As the new order takes shape, ...
  • Equity outlook: The high cost of global fragmentation for US portfolios

    Quarterly Outlook

    Equity outlook: The high cost of global fragmentation for US portfolios

    Charu Chanana

    Chief Investment Strategist

  • Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Quarterly Outlook

    Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Commodity Outlook: Commodities rally despite global uncertainty

    Quarterly Outlook

    Commodity Outlook: Commodities rally despite global uncertainty

    Ole Hansen

    Head of Commodity Strategy

  • Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    Quarterly Outlook

    Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    John J. Hardy

    Global Head of Macro Strategy

  • Equity Outlook: The ride just got rougher

    Quarterly Outlook

    Equity Outlook: The ride just got rougher

    Charu Chanana

    Chief Investment Strategist

  • China Outlook: The choice between retaliation or de-escalation

    Quarterly Outlook

    China Outlook: The choice between retaliation or de-escalation

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: A bumpy road ahead calls for diversification

    Quarterly Outlook

    Commodity Outlook: A bumpy road ahead calls for diversification

    Ole Hansen

    Head of Commodity Strategy

  • FX outlook: Tariffs drive USD strength, until...?

    Quarterly Outlook

    FX outlook: Tariffs drive USD strength, until...?

    John J. Hardy

    Global Head of Macro Strategy

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

Content disclaimer

The information on or via the website is provided to you by Saxo Bank (Switzerland) Ltd. (“Saxo Bank”) for educational and information purposes only. The information should not be construed as an offer or recommendation to enter into any transaction or any particular service, nor should the contents be construed as advice of any other kind, for example of a tax or legal nature.

All trading carries risk. Loses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money.

Saxo Bank does not guarantee the accuracy, completeness, or usefulness of any information provided and shall not be responsible for any errors or omissions or for any losses or damages resulting from the use of such information.

The content of this website represents marketing material and is not the result of financial analysis or research. It has therefore has not been prepared in accordance with directives designed to promote the independence of financial/investment research and is not subject to any prohibition on dealing ahead of the dissemination of financial/investment research.

Please refer to our full disclaimer and notification on non-independent investment research for more details.
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-ch/legal/disclaimer/saxo-disclaimer)

Saxo Bank (Schweiz) AG
The Circle 38
CH-8058
Zürich-Flughafen
Switzerland

Contact Saxo

Select region

Switzerland
Switzerland

All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) Ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law. 

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.