Gold (XAUUSD), Silver, Platinum Forecasts – Gold Attempts To Rebound Despite Rising Treasury Yields

Gold Gains Ground As Traders Buy The Dip

Gold attempts to rebound after the strong pullback despite stronger dollar and rising Treasury yields.

The yield of 2-year Treasuries climbed towards the 4.33% level, while the yield of 10-year Treasuries settled above 4.50%. Treasury yields are moving higher as bond traders prepare for rate hikes from the Fed. From a big picture point of view, rising Treasury yields are bearish for gold that pays no interest. However, gold traders have mostly ignored rising Treasury yields in today’s trading session.

U.S. dollar gained ground against a broad basket of currencies as traders focused on dynamics of Treasury markets and bet on hawkish Fed. Strong dollar did not put pressure on gold markets today.

Oil markets suffered a sell-off amid progress in U.S. – Iran negotiations. WTI oil pulled back below the $74.00 level, while Brent oil settled below $78.00. Falling oil prices provided material support to gold.

It remains to be seen whether gold will manage to gain sustainable upside momentum amid rising Treasury yields. Some traders are ready to buy the dip, but hawkish Fed policy outlook may ultimately put significant pressure on gold prices.

Currently, gold is trying to settle back above the $4200 level. In case this attempt is successful, gold will move towards the nearest resistance level, which is located in the $4370 – $4390 range.

On the support side, a move below the $4150 level will open the way to the test of the support at $4020 – $4040. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Silver Moves Higher As Gold/Silver Ratio Pulls Back

Silver gained ground as gold/silver ratio pulled back below the 64.00 level. In case gold/silver ratio settles below 63.00, it will head towards the 50 MA at 60.79, which will be bullish for silver markets.

From the technical point of view, silver attempts to settle back above the support at $65.00 – $66.00. If silver manages to settle above the $66.00 level, it will move towards the resistance level at $71.00 – $72.00.

On the support side, silver needs to settle back below the $64.00 level to gain additional downside momentum in the near term. A move below the $64.00 level will push silver towards the support at $61.00 – $62.00.

Platinum Faced Strong Resistance Near $1700

Platinum made an attempt to settle above the resistance level at $1680 – $1700 but lost momentum and pulled back. Palladium markets were up by +0.3%, which was neutral for platinum. Interestingly, the strong pullback in the oil markets did not provide support to platinum and palladium.

If platinum declines below the $1650 level, it will move towards the support at $1600 – $1620. A move below the $1600 level will provide platinum with a chance to gain additional downside momentum.

On the upside, platinum needs to settle above $1700 to gain upside momentum in the near term. In this case, platinum will head towards the resistance at $1780 – $1800.

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