CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Metals galore all breaking higher

Article By: ,  Financial Analyst
October 24, 2019 11:18 AM

I will let the charts do the talking, but metal prices have been pushing higher in recent days and today gold finally joined the fun as it broke key resistance in the $1495 area. It needs to hold above here on a daily closing basis if we are to see further gains in the days ahead.

Precious metals prices have risen partly because of expectations than central banks globally will continue to keep monetary policy extraordinary loose, while base metals have found support amid optimism over a US-China trade deal.

Anyway, here are comes the charts with brief comments for each:

Gold was testing the trend of its bull flag – a closing break is what the bulls are looking for. The bears want to see a failure but they have had plenty of time to drive prices lower and have so far been unable to do so:

It is not just gold against the dollar. Gold in euro terms is also printing bullish price action after it broke through a bearish trend line:

Silver has broken its bearish trend line and has now established a base above - looks like it wants to shoot higher now. The bears will need to see a break back below key support at $17.60.

It is not all about gold and silver. Platinum also showed strong bullish characteristics yesterday as it broke its bearish trend and there has been some follow-through today, which is always a good sign:


Among the precious metals, palladium has been the strongest and it is now bull flagging – a break and hold is what the buyers are looking for here:

Finally, copper is looking interesting given the breakout above the bearish trend line and from consolidation pattern. Dr Copper is therefore pointing to a healthier global economy:

*Chart Sources: eSignal, Trading View and City Index. Please note, not all of these products may be available to trade in all regions.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024