Gold (XAUUSD), Silver, Platinum Forecasts – Gold Attempts To Rebound Despite Rising Oil Prices

Gold Is Stuck Near The $4400 Level Despite Strong Dollar

Gold markets are trying to stabilize after the strong sell-off. Some traders are ready to buy the dip despite strong dollar and rising Treasury yields.

U.S. dollar gained ground against a broad basket of currencies as traders focused on PMI reports. The reports indicated that U.S. economy remained in decent shape despite rising energy prices.

Treasury yields moved higher as bond traders bet on hawkish Fed. The yield of 2-year Treasuries climbed above the 3.95% level, while the yield of 10-year Treasuries moved above 4.40%. Rising Treasury yields are bearish for gold and other precious metals that pay no interest.

It remains to be seen whether gold manages to gain upside momentum as oil prices are moving higher amid tensions in the Middle East. Brent oil climbed towards the $105.00 level amid reports indicating that Saudi Arabia and UAE were thinking about joining the operation against Iran.

Traders have already started to cut their bets on de-escalation of the Middle East conflict, which may serve as a significant bearish catalyst for gold markets. Gold has traded as a risker asset in recent weeks, so rising geopolitical tensions are bearish for gold prices.

From the technical point of view, gold continues its attempts to settle below the support level at $4400 – $4420. In case gold manages to settle below the $4400 level, it will move towards the next support, which is located near recent lows at $4100 – $4120. RSI is in the oversold territory, but there is enough room to gain additional downside momentum in case the right catalysts emerge.

Silver Moves Higher As Gold/Silver Ratio Pulls Back

Silver managed to gain some ground as gold/silver ratio pulled back towards the 63.50 level.

Traders bet on a rebound after the strong pullback, which pushed silver from the $90.00 level towards recent lows near the $61.00 level.

It remains to be seen whether silver may gain additional upside momentum if oil prices keep moving higher. Rising energy prices are bearish for silver as they reduce global appetite for risk.

The nearest resistance level for silver is located in the $71.00 – $72.00 range. A successful test of this level will open the way to the test of the next resistance at $78.00 – $79.00.

On the support side, silver needs to settle below the support at $64.00 – $65.00 to gain additional downside momentum in the near term. In this case, silver will head towards the $61.00 level. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

Platinum Attempts To Settle Back Above $1900

Platinum gains ground as the market attempts to rebound after recent sell-off. It should be noted that palladium markets are down by -1.3%, which is bearish for platinum.

Currently, platinum is trying to settle above the nearest resistance level, which is located in the $1880 – $1900 range. If platinum manages to settle above the $1900 level, it will head towards the next resistance at $2040 – $2060.

On the support side, a move below the support level at $1785 – $1805 will push platinum towards recent lows near the $1700 level.

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