Commodity Technicals: Gold, Silver At Critical Juncture

December 22, 2011

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.


Gold Year-To-Date:


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:


Find your next ETF

Reset All