While gold hogs the headlines, these other metals have promising technical set-ups, says Katie Stockton

Metals are outperforming the S&P 500 year-to-date, with gold leading the gains, and analysts at Fairlead Strategies anticipate gold's relative outperformance to continue. Copper is exhibiting bullish technical signals, poised for a breakout above its 50-day moving average with a potential rally towards $5.20/lb, while platinum is emerging as a catch-up opportunity, having broken above long-term triangle resistance with a near-term objective of $1240/t oz.

Analysis

Metals have demonstrated significant strength year-to-date, with most outperforming the S&P 500 Index. Gold, in particular, has been a standout relative performer, and Fairlead Strategies anticipates this outperformance will persist, driven by its positive long-term momentum both in absolute terms and relative to equities. Beyond gold, copper prices are exhibiting resilience, trading above their 50-day moving average and showing a pending breakout from a triangle pattern; positive short-term momentum suggests the weekly MACD could also turn positive, supporting a potential rally towards long-term resistance near $5.20/lb. Key support for copper is identified at the 200-day moving average near $4.43/lb and trendline support near $4.08/lb, although a neutral long-term bias is considered appropriate for copper while it remains below the $5.20/lb resistance. Concurrently, platinum is highlighted as a potential 'catch-up' opportunity, having confirmed a breakout above long-term triangle resistance last week, a bullish signal for the subsequent months. Platinum's intermediate-term momentum is positive and strengthening, indicating that recent consolidation will likely be brief, with a next major resistance target at $1240/t oz., a level derived from a 50% Fibonacci retracement that captured the 2021 high. Initial support for platinum is now established near its former resistance level of $1030/t oz. Both gold and silver are noted to be in bullish long-term uptrends.

Key Decisions for Investors

• Investors might consider maintaining or increasing exposure to gold (e.g., via GLD), given its sustained outperformance and positive long-term momentum relative to equities.
• Tactical opportunities in copper (e.g., via CPER) could be evaluated, targeting a potential rally towards $5.20/lb following its pending breakout, while closely monitoring support levels at $4.43/lb and $4.08/lb for risk management.
• Platinum (e.g., via PPLT) warrants attention as a potential 'catch-up' trade; its recent breakout above long-term resistance suggests upside towards $1240/t oz., with initial support identified near $1030/t oz.