Gold (XAUUSD), Silver, Platinum Forecasts – Gold Climbed Above $4550

Gold Moves Higher Amid Rising Appetite For Risk

Gold gained upside momentum as traders focused on the strong sell-off in oil markets. Oil prices are down by -7.5% as traders react to progress in U.S. – Iran negotiations.

President Trump said that talks were “proceeding nicely”, indicating that U.S. and Iran were moving towards a comprehensive peace deal. According to recent reports, Iran’s nuclear program and the status of the Strait of Hormuz remain the key points in negotiations.

From a big picture point of view, traders bet that none of the sides has the desire to continue military operations, so they will have to work to reach a peace deal.

The sell-off in the oil markets raised demand for risk assets, which was bullish for gold. U.S. bond markets are closed due to Memorial Day holiday, but the yields in the European bond markets are falling sharply. Falling yields are bullish for gold that pays no interest.

U.S. dollar pulled back against a broad basket of currencies as traders focused on geopolitical news. Weaker dollar provided additional support to gold markets.

Currently, gold is trying to settle above the resistance level at $4530 – $4550. In case gold stays above the $4550 level, it will head towards the next resistance, which is located in the $4660 – $4680 range. A move above the $4680 level will push gold towards May highs near the $4775 level. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge.

Silver Tests Resistance At $78.00 – $79.00

Silver rallied as gold/silver ratio declined below the 58.50 level. Gold/silver ratio is moving lower amid rising appetite for risk. In case gold/silver ratio stays below the 58.50 level, it will head towards the 56.00 level, which will be bullish for silver. It should be noted that gold/silver ratio tested the 53.00 level on May 13, so there is plenty of room to gain additional downside momentum in the near term.

Silver climbed above the 50 MA at $75.93 and is trying to settle above the resistance level at $78.00 – $79.00. In case silver manages to settle above the $79.00 level, it will head towards the next resistance at $85.00 – $86.00. On the support side, a move below the 50 MA at $75.93 will push silver back towards the support level at $71.00 – $72.00.

Platinum Rallies As Traders Bet On Iran Peace Deal

Platinum gained strong upside momentum amid broad rally in precious metals markets. Palladium prices are up by +3.7%, which is bullish for platinum.

From the technical point of view, platinum attempts to settle above the $1950 level. If platinum stays above $1950, it will head towards the 50 MA at $1987. A move above the 50 MA will open the way to the test of the nearest resistance level, which is located in the $2040 – $2060 range.

On the support side, platinum needs to settle below the support level at $1880 – $1900 to gain downside momentum in the near term. A move below the $1880 level will push platinum towards the next support at $1780 – $1800.

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