Gold Moves Higher As Traders Buy The Dip
Gold attempts to rebound despite rising Treasury yields. The yield of 10-year Treasuries climbed above the 5.28% level, while the yield of 30-year Treasuries settled above the psychologically important 5.60% level.
FedWatch Tool indicates that the probability of a rate hike at the next meeting in October has declined to 68.1%. Traders reacted to the pullback in the oil markets, which was driven by hopes for a temporary U.S. – Iran deal. It remains to be seen whether such a deal is possible in the near term.
Meanwhile, Fed’s Barr has recently said that additional rate hikes would be needed to slow inflation. He also added that he did not see a clear trend towards a timely return to Fed’s 2% target.
U.S. dollar rallied against a broad basket of currencies as forex traders focused on developments in debt markets. Interestingly, stronger dollar did not put any pressure on gold markets in today’s trading session.
It looks that some traders were ready to buy the dip despite strong dollar and rising Treasury yields. It remains to be seen whether gold will be able to gain additional upside momentum in the near term as the probability of a rate hike at the meeting in October is high.
That said, a potential pullback in the oil markets may provide some support to gold prices. Today, WTI oil declined towards the $90.00 level, while Brent oil settled near $103.00.
From the technical point of view, gold made an attempt to settle back above the $4180 level but lost momentum and pulled back. In case gold settles below the support at $4160 – $4180, it will move towards the next support level, which is located in the $4000 – $4020 range. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.
Silver Is Mostly Flat After Yesterday’s Sell-Off
Silver is swinging between gains and losses as gold/silver ratio climbed above the 68.00 level. If gold/silver ratio stays above 68.00, it will move towards the psychologically important 70.00 level, which will be bearish for silver.
Silver continues its attempts to settle below the support level at $61.00 – $62.00. If silver manages to settle below the $61.00 level, it will head towards the next support, which is located in the $56.00 – $57.00 range.
On the upside, a move above the $62.00 level will open the way to the test of the 50 MA at $63.89.
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See all Gold forecastsPlatinum Tests New Lows
Platinum is losing ground despite the pullback in the oil markets as traders focus on strong dollar and monitor the sell-off in U.S. debt markets. Palladium markets are down by -0.1%, which is neutral for platinum.
Platinum declined below the support at $1700 – $1720 and is trying to settle below the $1680 level. If platinum manages to settle below $1680, it will head towards the next support, which is located in the $1600 – $1620 range.
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