Precious metals push higher; A closer look with TA

Summary:

• Gold, Silver and Platinum all higher despite USD strength

• Inverse S-H-S formation for Gold and Platinum?

• Silver near 23.6% fib as EMA show bullish cross

There’s been a pretty clear move higher in the precious metal complex today with Gold (+1.3%), Silver (+2.6%) and Platinum (+1.2%) all clearly in the green. The gains are all the more impressive considering that the US dollar is on course for another solid day of gains with the greenback higher against all of its peers barring the BRL and JPY.

The US dollar is rising today against the majority of its peers today, which makes the move higher in the precious metals even more impressive. Source: xStation  

Let’s now look at each of the aforementioned markets individually and see what the technical situation is.

Gold

A inverse head and shoulders formation could be developing here, with price currently testing a possible neckline. A falling trendline going back to the start of July could be seen as the neckline in this setup and a break above here would target a symmetrical move higher of around $45 to $1250. However, some traders may view this differently with the horizontal swing level around $1215 possibly seen as the neckline and this would mean that price is yet to break out. This second point of view would target a larger symmetrical move of $55 to $1270 but this setup wouldn’t be triggered unless price breaches $1215.

Gold could be testing a possible neckline in a inverse head and shoulders formation. A clean break above here could be seen to target a larger push higher. Source: xStation

Silver

This market has been declining for several months but price appears to have formed a base of late and a positive cross in the 8 and 21 EMAs could be seen to indicate the trend has turned higher. Price has reached its highest level since August today and the market is now probing the 23.% fib of the larger decline from last September at 14.96. A break above here would open up the possibility of further gains with the 38.2% at 15.58 and the 50% at 16.08. Lows around 13.97 remain potentially key support.

Silver has rallied to its highest level in a month today with price probing the 23.6% fib of the larger decline around 14.96. Source: xStation

Platinum

This chart looks not too dissimilar to the Gold one in that a possible inverse head and shoulders could be forming. The necklines are closer together with a falling one being tested at present and the horizontal one seen possibly at 834. These would target 892 and 918 respectively from a textbook manner. Price has also recently breached a long term falling trendline from the start of the year and after retesting from above has moved higher. Possible support may be found at 803 and if that fails then 750.

The Platinum chart looks similar to Gold with a possible inverse head and shoulders also being carved out here. Source: xStation