Gold (XAUUSD), Silver, Platinum Forecasts – Gold Attempts To Rebound After Sell-Off

Gold Tests The $4350 Level

Gold is trying to rebound after sell-off despite escalation in the Middle East. Iran attacked Israel, claiming that it was a response to Israel’s operation against Hezbollah in Lebanon. In retaliation, Israel launched strikes against Iran.

President Trump intervened and said that both countries were “looking to do” an immediate ceasefire. Iran said that it ended attacks against Israel. In turn, Israel’s Prime Minister Benjamin Netanyahu said that his country would also halt its attacks against Iran.

Oil prices were up by almost 5% when Iran and Israel attacked each other, but lost momentum and pulled back. Currently, oil markets are up by roughly 1%.

Interestingly, the rally in the oil markets did not put additional pressure on gold prices. It looks that some traders were ready to use the strong pullback as an opportunity to increase their long positions at attractive levels.

From a big picture point of view, traders remain worried that central banks will start raising rates to curb inflation, which was triggered by high oil prices. The start of the rate hike cycle in developed economies could serve as a significant bearish catalyst for gold markets.

Currently, gold is trying to settle back above the support at $4350 – $4370. In case this attempt is successful, gold will head towards the resistance level at $4530 -$4550. A move above the $4550 level will push gold towards the 50 MA at $4624.

On the support side, a move below the $4300 level will open the way to the test of the next support, which is located in the $4180 – $4200 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Silver Rebounds From Multi-Week Lows

Silver gains ground as gold/silver ratio pulled back towards the 63.50 level. In case gold/silver ratio settles below 63.00, it will head towards the 50 MA at 60.82, which will be bullish for silver.

If silver climbs back above the $70.00 level, it will get to the test of the resistance at $71.00 – $72.00. A move above the $72.00 level will push silver towards the 50 MA at $76.12.

On the support side, the nearest support level for silver is located in the $65.00 – $66.00 range. In case silver declines below the $65.00 level, it will head towards the $61.00 level.

Platinum Tests New Lows

Platinum is losing ground as pullback continues. High oil prices continue to put pressure on platinum markets. Traders worry that global economic growth will slow down and demand for platinum will be reduced. Palladium markets are down by -2.2%, which is bearish for platinum.

Platinum declined below the support level at $1780 – $1800 and is trying to settle below the $1750 level. In case this attempt is successful, platinum will head towards the next support, which is located in the $1680 – $1700 range.

On the upside, platinum needs to settle back above the $1800 level to have a chance to gain upside momentum in the near term. A move above $1800 will push platinum towards the resistance level at $1880 – $1900.

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