Gold Moves Higher As Treasury Yields Retreat
Gold attempts to rebound after yesterday’s sell-off, which was triggered by dollar’s rally.
Falling Treasury yields provided support to gold markets in today’s trading session. The yield of 2-year Treasuries pulled back towards the 4.75% level, while the yield of 10-year Treasuries declined below 5.25%. The yield of 30-year Treasuries pulled back towards 4.62%.
Finally, investors have started to return to U.S. bond market to take advantage of high yields. That said, it remains to be seen whether pullback in yields will be sustainable.
U.S. dollar pulled back against a broad basket of currencies as traders focused on falling Treasury yields. Weaker dollar provided additional support to gold market in today’s trading session.
Interestingly, gold traders ignored the rally in the oil markets. Oil prices gained 2.5% amid escalation in the Middle East. I’d note that prices have moved away from session highs after President Trump said that U.S. would not attack Iran until midterm elections.
The nearest resistance level for gold is located in the $4160 – $4180 range. If gold climbs above the $4180 level, it will head towards the next resistance at $4300 – $4320.
On the support side, a move below the $4100 level will push gold towards the support at $4000 – $4020.
Silver Tests New Lows As Pullback Continues
Silver moved lower as gold/silver ratio climbed towards the psychologically important 70 level. If gold/silver ratio settles above 70, it will head towards the 72 level, which will be bearish for silver.
Silver settled below the $60.00 level and is trying to settle below $59.00. In case this attempt is successful, silver will head towards the nearest support at $56.00 – $57.00. A move below the $56.00 level will indicate that silver is ready to gain additional downside momentum.
On the upside, silver needs to settle above the resistance at $61.00 – $62.00 to gain momentum in the near term. In this case, silver will move towards the 50 MA at $64.21.
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See all Gold forecastsPlatinum Remains Stuck Near Support At $1600 – $1620
Platinum continues its attempts to settle below the support at $1600 – $1620 as traders focus on rising oil prices. High oil prices hurt global economy and may reduce demand for platinum. Palladium markets have managed to gain some ground in today’s trading session, providing some support to platinum.
If platinum manages to settle below the $1600 level, it will head towards the next support level at $1520 – $1540 level. In my opinion, platinum may receive strong support near the $1520 level. Most likely, it will need significant negative catalysts to move lower.
On the upside, a move above the $1650 level will open the way to the test of the nearest resistance level at $1700 – $1720. If platinum climbs above the $1720 level, it will head towards the 50 MA at $1760. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
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