Gold Is Stuck Near The $3900 Level
Gold attempts to rebound despite strong dollar. U.S. dollar tested yearly highs as traders remained focused on hawkish changes in Fed policy outlook.
FedWatch Tool indicates that there is a 91.7% probability that Fed will raise the federal funds rate by 25 bps in December. Traders also expect that Fed will follow up with a 25 bps hike in January. Rising interest rates are bearish for gold that pays no interest.
Treasury yields moved lower in today’s trading session as some traders were ready to buy U.S. bonds after the strong sell-off. The yield of 2-year Treasuries declined towards the 4.85% level, while the yield of 10-year Treasuries settled near 5.13%. The move did not have a material impact on gold markets.
Lower-than-expected U.S. PPI did not provide support to gold prices. The report showed that PPI increased by +0.3% month-over-month in October, compared to analyst forecast of +0.4%. Core PPI grew by +0.3%, in line with analyst estimates.
From the technical point of view, gold remains stuck near the support level at $3890 – $3910. If gold declines below the $3890 level, it will head towards the next support, which is located in the $3780 – $3800 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
On the upside, a move above the $3920 level will push gold towards the resistance at $4000 – $4020. If gold settles above the $4020 level, it will head towards the $4100 level.
Silver Retreats As Gold/Silver Ratio Climbs Above 79
Silver is losing ground as gold/silver ratio climbed above the 79.00 level. If gold/silver ratio settles above 79.00, it will head towards the 80.00 level, which will be bearish for silver.
Gold/silver ratio is moving higher as demand for risk assets declines amid pullback in U.S. equity markets. Nvidia’s problems continue to put pressure on the NASDAQ index, which may have an impact on global markets.
Silver declined below the psychologically important $50.00 level and is trying to settle below $49.00. In case this attempt is successful, silver will head towards the support level at $47.00 – $48.00.
On the upside, a move above $50.00 will push silver towards the resistance level at $51.00 – $52.00. A successful test of this level will open the way to the test of the $54.00 level.
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See all Gold forecastsPlatinum Tests New Lows
Platinum is moving lower as pullback continues. Palladium markets are up by +1.5%, but this move did not provide any support to platinum.
The nearest support level for platinum is located in the $1440 – $1460 range. A move below the $1440 level will push platinum towards the next support level, which is located near recent lows at $1360 – $1380.
On the upside, a move above $1500 will open the way to the test of the resistance level at $1520 – $1540. If platinum moves above the $1540 level, it will head towards the $1600 level.
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