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Gold, Silver, Platinum Forecasts: Safe Haven Appeal Amid Geopolitical Turmoil

By:
Arslan Ali
Updated: Oct 9, 2023, 21:11 GMT+00:00

Amid escalating geopolitical tensions, gold, silver, and platinum experience significant price movements, with gold skyrocketing by almost 1.75%.

Gold and silver bullion, FX Empire

In this article:

Key Insights

  • Gold’s Bullish Stance: Priced at $1862 with a 1.75% rise, Gold’s bullish engulfing candle and RSI rebound from the oversold zone emphasize a buying sentiment.
  • Silver’s Geopolitical Reaction: With its pivot point at $21.90, resistance levels up to $23 are observed. Its response to global events requires investors’ keen attention.

Gold (XAU/USD)

Gold Daily Chart

As of October 09, the precious metal gold is priced at $1862, registering a substantial 1.75% rise from Monday, likely due to its safe-haven allure. On a 4-hourly chart, gold’s pivotal point stands at $1862, complemented by a 38.2% Fibonacci retracement.

Resistance levels are poised at $1879 (50% Fibo level), $1895 (61.8% Fibo retracement), and $1919. Conversely, the yellow metal finds support at $1844 (23.6% Fibonacci level now acting as a support), followed by $1832 and $1812.

The Relative Strength Index (RSI) is currently at 42, suggesting gold’s recent rebound from the oversold territory, signaling a budding bullish trend. A bullish engulfing candle has emerged on the daily chart, reinforcing the buying sentiment.

The overall trend for gold is bullish. In the short term, market participants might anticipate XAU/USD to challenge the resistance at $1879.

Silver (XAG/USD)

Silver Daily Chart

Silver, trading at $21.90, saw an increase of 1.45%, possibly influenced by the escalating geopolitical tensions, notably the Israel-Gaza conflict. Analyzing the daily chart, Silver’s current position coincides with its pivot point of $21.90, derived from the 38.2% Fibonacci retracement. Looking ahead, resistance zones are marked at $22.21 (50% Fibo level), $22.65 (61.8% Fibo retracement), and $23. On the downside, Silver finds initial support at $21.45, emphasized by the 23.6% Fibonacci level, with subsequent support anticipated around $21. With the backdrop of significant geopolitical events, Silver’s trajectory might see fluctuations, making it essential for traders to stay vigilant.

Platinum

Platinum Daily Chart

Platinum, currently trading at $889, experienced a marginal rise of 0.05%, potentially influenced by geopolitical disturbances. Analyzing the daily chart, the metal’s key pivot point is $893.83, aligning with the descending channel’s downward trendline.

The Relative Strength Index (RSI) stands at 60, suggesting a moderately bullish sentiment. In terms of upward potential, if Platinum manages a breakout from the said channel, immediate resistance is anticipated at $911.02, followed by $924 and $935.

On the downside, the metal finds initial support at $880, with further cushions at $870 and $860. Traders should monitor these key levels while keeping an eye on global events that could influence Platinum’s price dynamics.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.

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