Technical trading levels remained in focus across the dollar, gold and copper, with daily closes around defined zones set to shape next week’s direction. In the dollar (DX.F), Thursday finished below the 100 level and the market moved back under the 50% Fibonacci retracement as well as the lower boundary of a declining channel, printing another local low. Attention is on whether the latest session can close back above those two markers, which would negate a developing bearish engulfing pattern, or whether downside follow-through brings a test of the early-June bullish gap at 99.18–99.26 and then the 61.8% Fibonacci retracement near 99.00.
Gold (GC.F) rebounded after failing to clear the top of its declining channel, regained the channel, and reached an upside target derived from an inverse head & shoulders pattern. The immediate technical marker is the bearish gap at 4375–4381, with a weekly close above 4381 keeping scope for 4500–4525, while a reversal back below the channel would undermine the breakout. Copper (HG.F) extended a correction after an all-time high, as the market failed to hold above 669 and closed at 670, invalidating a break above prior highs and an ascending channel; focus turns to 656, then bullish gaps at 651–655 and 647–650.
Key Technical Levels and Market Decision Points
We need to ignore the daily noise in the markets right now and focus strictly on the key technical support and resistance levels. Across multiple assets, these exact zones are dictating the price action and setting up major decision points for the coming weeks. We must stay patient and wait for these key boundaries to confirm their direction before putting fresh capital at risk.
Fundamentals and Near-Term Triggers for Dollar, Gold, and Copper
We are watching the US dollar index closely as it slips below the psychological 100 level. This weakness comes as cooling global inflation and slowing labor markets fuel expectations of continued interest rate cuts. If sellers remain in control below the 50% Fibonacci retracement, we should prepare for the dollar to test the support gap between 99.18 and 99.26, or even drop to 99.00.
Meanwhile, gold is showing incredible strength, hitting our upside target near 4381. This massive rally is well-supported by fundamental data, as global central banks purchased a record-breaking amount of gold in the first half of the year to diversify their reserves. If we can secure a weekly close above 4381, the technical pathway remains clear for gold to challenge the 4500 to 4525 range.
For copper, we saw buyers fail to sustain the breakout above 669, leading to a technical correction. This pullback occurs despite long-term supply deficits, with industry groups forecasting a significant shortfall in refined copper production this year. We should watch for a test of the 656 level, and if that fails, we expect the next solid support to kick in around the 647 to 655 zone.
