Gold Rallies Above Channel, Copper Extends Correction Amid Failed Breakout
Gold futures reclaimed their declining channel and reached an upside target based on an inverse head & shoulders pattern. If buyers close both today's session and the entire week above $4,381, their next destination is likely to be between $4,500 and $4,525.
Momentum indicators are on the buyers' side, increasing the probability of further strength, especially if today's session closes above the red declining channel. An invalidation of the earlier breakout above the red declining channel could slow down the bulls.
Copper futures, on the other hand, extended its correction after a failed breakout above previous highs and the upper boundary of the green ascending channel. Sellers may shift their focus toward the 656 support area or the nearest bullish gaps at $651-$655 and $647-$650 if buyers fail to defend it.
A daily close below $669 in Copper would be the first signal that a deeper correction is starting. In contrast, a weekly close above $4,381 in Gold keeps the door open toward $4,500-$4,525.