Gold at Nearly 6-year Highs, Ready to Close Best Week Since Feb 2016

Gold is decoupling from other metals on Friday as it is extending gains with violence, but silver, copper, palladium, and platinum are getting hard times to extend benefits.

Risk aversion is hurting market sentiment plus a dollar weak on the back of a possible Fed’s interest rate on July are fueling spot gold to nearly six years highs.

Drums of war between the United States and Iran have pushed oil barrels to reach its highs in June. However, the market is digesting the news that both countries are taking steps to calm down the situation.

Metal prices and investing report for June 21

Gold is extending its rally for the fourth consecutive day as it jumped to 1,412.00 on Friday, its highest level since September 2013. The pair is now trading back in consolidation mode around 1,395. A close above the 1,400 level will be essential for more upside confirmation; however, technical studies suggest more room for gains.

As for the upside, 1,420 is the next resistance; then, investors will face buying zones at 1,430 and 1,475. Besides technical factors, a weak dollar amid speculations on a Fed’s rate cut and political tensions in the Middle East are fueling risk aversion, so, pushing gold up.

On the weekly chart, gold is ready to close its fifth consecutive week with gains as XAU/USD is finishing around 4% positive, its better week since February 2016.

Silver is stopping three days of gains as it is posting losses on Friday just after reaching highs since March 25 at 15.55. , and it started a decline to current levels around 15.36.

Technical indicators in the daily chart are mixed for the pair with resistances at 15.60 and 15.80. Supports are identified at 15.15, 15.10, and the 14.80 levels.

On the weekly chart, silver is performing a good week with over 3% gains. The metal is playing its fourth positive week in the last five as it is recovering from previous week’s decline.

Other metals

Copper has just ignited this week after two periods of movements pegged to the 2.6200 area. On Friday, it is trading 0.31% down, but XCU/USD is ready to close its best week since March with 2.8% weekly gains.

As copper is trading at 2.6975, a close above the 2.7000 would be vital for more gains.

Palladium is consolidating levels on Friday after the failing rally performed Thursday. Yesterday, palladium jumped to highs since March 27 at 1,530; however, the pair was not able to extend gains, and it is now moving just above 1,480.

On the week, palladium is extending gains for the third week in a row. It is consolidating gains above the critical 1,450 area. The long run seems ready to extend benefits, but in the middle term, the unit looks exhausted. So, more consolidation move ahead of the week is expected.

Platinum is extending losses on Friday from the peak reached on Thursday at 825.00. XPT/USD is trading now at 804.20, 0.50% down on the day, 2.5% negative from its peak at 825.00.

On the week, the unit is fighting to close positive; however, it remains 0.50% negative. XPT/USD is trading in a range between 790.00 and 825.00.