We examine the charts for the major commodities.
Gold found support last week near its September lows as some traders bought on speculation that the metal could put in a “double bottom.” That support is close to $1600/oz, but can be considered to extend down as low as the Sept. 26 intraday low of $1532.
Looking at gold from a longer-term perspective, we see that this support area between $1532 and $1600 corresponds with an upward trendline that extends back to 2008, when gold began climbing after bottoming out following the financial crisis of 2008.
Thus, gold is in a very critical phase right now and must hold above these support levels. A breakdown will be viewed as extremely bearish from a technical perspective and could push prices much lower. The next support levels are near $1480, followed by close to $1300.
Gold Since 2008:
Like gold, silver is near a junction of two support levels close to $25/oz. In particular, $26 is the critical level that bulls have to defend. A breakdown from there may lead to a quick move toward $20.
Silver Since 2008:
Platinum has been consolidating after breaking a key horizontal support level near $1450/oz. The outlook is bearish until clear signs of bottoming emerge.
Platinum Since 2009:
Palladium is in good shape relative to the other precious metals. Prices seem to be in an ascending triangle formation, with upward trendline support near $590 and horizontal resistance at $690.
Palladium Since 2010: