Metals are turning bearish – Silver (XAG/USD), Gold (XAU/USD) and Copper (XCU/USD) Outlook

• Silver, Gold and the entire metals Market is melting from the past week of action
• Now reaching key levels, precious metals will be under scrutiny for upcoming trading
• High timeframe analysis for XAG/USD, XAU/USD and XCU/USD (Copper)

Metals were subject to quite a bounce after a disastrous end-of-week close and open.

But for those who were looking to join the trend on dip-buying and thinking it would be that easy, Markets can offer painful lessons.

One thing that stood out over the past few years of trading, looking at the Stock Market, Crypto, or more, is that overbought and oversold mean nothing.

If prices are bid every day, it means participants are not willing to give up their share of the cake.

If prices pull back, however, some are doubting the trend; more participants are allowed to enter, which reduces the "exclusivity" component of the frenzy, not to mention CTAs and Hedge Funds taking positions on such signals.

The rally in Gold and Silver had been undefeated since August.

Even before this, the May to July ($3,000 to $3,500) consolidation in the Bullion never really offered a retracement, but really just kept a sideways picture.

Retracing is a sign of impending weakness; consolidation, of strength.

As metals retraced between 10% to 20% from their extreme rallies last Friday on the Kevin Warsh announcement, doubts are emerging, and participants are now finding new reasons to mean-revert.

The latest news is that China's gold consumption fell yet again, and there are always more reasons to explain recent moves.

The reality is that stops are kicking and that trading metals won't be so easy anymore. Geopolitics and Central bank compromises are still supporting factors, but at what price?

That's what the Market is testing right now.

In the meantime, we will dive into a Daily timeframe analysis for Gold (XAU/USD), Silver (XAG/USD), and Copper (XCU/USD) to spot where the pullback could stall for dip-buying.

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When the price action gets volatile, it's essential to keep track of technicals!

Gold bears took control of the price action after yesterday's failure to close above $5,000.

The current session's bear candle hints at a return within the Main 2025 bull channel;

• A close below $4,900 adds a bigger chance of a retest of the $4,395 Monday lows, with bearish forces entering at the channel highs.
• Failing to rebound here will next test the Main Support between $3,800 to $4,000.
• Any bounce back above $5,100 would be followed by a quick retest of the $5,600 All-Time highs.

Note: Any escalation between the US and Iran can quickly change the picture and lead to a quick test of recent highs.

Betting on geopolitical events is a rough thing to do in Market, hence in that perspective buy stops (above key resistance) would be the best way to express such a view.

Higher Timeframe Levels to watch for Gold (XAU/USD):

Resistance Levels:

• $5,000 to $5,100 Major Psychological Pivot (acting as key Resistance)
• $5,024 session highs
• Current All-time Highs – $5,500 to $5,600
• Key Fibonacci Projection $5,800 to $5,900
• $5,400 mini-resistance

Support Levels:

• December Record $4,548
• Pivotal Support $4,400 to $4,500 – Bullish above, Bearish below
• Main Support $3,880 to $4,050
• $3,200 to $3,500 Major Support

It is crazy to see that the recent highs in Silver from just one week ago are 62% higher!

Parabolic trends can provide quite some pain when they cease. Now reaching its key $70 to $72 Support, Silver stands at a significant test:

• Any rebound from here hints at a rangebound action from $70 to $90
  • Keep a very close eye on the 50-Day MA ($77) for short-term momentum guides.
• Close below $70 would on the other hand trigger a further selloff. The next test is at the $60 minor support
• Preferable entries for Silver would span between $50 to the $55 Major Support.

Higher Timeframe Levels to watch for Silver (XAG/USD):

Resistance Levels:

• Higher Timeframe Resistance $89 to $92
• 2025 Record Major Pivot $80 to $84
• Key psychological resistance $100 to $104
• Current Record $121.67

Support Levels:

• Major 2026 Support $70 to $72 (testing)
• December FOMC Minor Support $58.00 to $60
• $53.50 to $54 October Resistance now Major Support

Copper is also facing a major test, with prices reaching the lower bound of its September upward channel and Pivotal support lows ($5.70).

Breaching below the channel hints at a larger retracement in the commodity, with a first potential stop at the $5.40 to $5.50 Minor Support, which would test the weekly open lows.

Any further retracement would see the most optimal entries for Copper at the Major Monthly Support between $4.90 to $5.00.

The 200-Day Moving Average ($5.02) also hangs around there as a technical support.

Higher Timeframe Levels to watch for Copper (XCU/USD):

Resistance Levels:

• $6.00 to $6.10 Early Jan 2026 Record
• Current ATH Resistance $6.40 to $6.50
• $6.52 Current Record
• Potential Resistance $6.90 to $7.00

Support Levels:

• Pivotal Support $5.70 to $5.90 – Bullish above, Bearish Below (testing)
• Monday lows $5.52
• Minor Support at March 2025 Highs $5.40 to $5.50
• 200-Day MA $5.02
• Major Monthly Support between $4.90 to $5.00

With positioning now far from extremes, fast bounces could happen on geopolitical turmoil, so it could be wise to stay close to the headline.

Safe Trades!

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