On Friday, as I walked into the main office of Blue Line Futures at the Chicago Board of Trade, I reviewed the overnight price movements in precious metals. Gold was down $80, Silver had dropped 95 cents, Copper was down 12 cents, and Platinum fell by $90. I realized that this sell-off was linked to a 9.1% year-on-year decline in China's industrial profits for May, which was much worse than the anticipated 0.3% decrease, mainly due to the effects of the trade war. However, the data does not account for the recent trade deal signed with China. I believe that these declines in precious metals are just short-term fluctuations within a broader, long-term, bullish market.
The first part of my Friday morning was spent discussing with clients and colleagues "why" precious metals are doing what they are doing and what to expect from them. While the decline looks dramatic, I switch to the technicals to review the roadmap and ensure the final destination remains intact. I find it equally important to analyze the technical chart patterns where proper recognition can help make trading decisions more straightforward. Technical analysis is both an art and a science. The key is recognizing these patterns while implementing a trading strategy on what you believe will happen next. Staying ahead of the markets has never been easier. Get the Blue Line Futures Precious Metals Chart Pack today by registering here: Get Precious Metals Chart Pack
Daily Gold Chart
One of the first steps to mastering chart analysis is to identify the trend. You may be familiar with the classic adage: "The trend is your friend." There are significant risks associated with going against the trend. Gold futures started their most recent upward movement after hitting a low of $2,670 in December 2025, reaching a peak of well over $3,500 on April 22. Since then, gold has tested the $3,500 resistance level three times.
When analyzing the daily Gold chart, two things come to mind. First, Gold has a triple top on the charts and lower channel since the start of the year. It becomes essential to recognize this pattern to help understand where Gold can go. Secondly, one must realize that there are areas of consolidation where support and resistance may form. Often, these areas become the optimal places for adding and reducing positions for risk management. I have identified two key levels for possible positioning in the above chart.
Daily Silver Chart
Silver has played "third fiddle" in the metals rally, with Platinum and Copper stealing its thunder. After achieving $35 in mid-October 2024, SilverSilver has consolidated in a sideways channel, leaving you with several areas of support and resistance before testing this level again earlier in the week.
With 25 years of experience in futures and commodities, I've learned that pullbacks are a healthy part of bull markets. "Bull Flags," when broken, can lead to explosive rallies. A "Bull Flag" indicates a potential continuation of an asset's upward price movement. When this pattern breaks, it can signal a strong bullish trend, suggesting another upward leg. For Silver, the key level to watch is $37.33; closing above this level could trigger another rally, potentially reaching $40. For those looking for "the story" behind Friday's sell-off, I cover those types of moves in a daily video called the "Metals Minute." Register for a free two-week trial here: Get the Metals Minute.
