Gold Attempts To Rebound As Traders Buy The Dip
Gold gains ground as traders focus on the pullback in the oil markets. Brent oil pulled back towards the $116 level, while WTI oil declined towards $102.00 as traders focused on Saudi Arabia’s efforts to negotiate with Iran. Turkey and Pakistan have joined Saudi Arabia in an attempt to restart peace talks with the U.S.
Traders also prepare for the Fed Interest Rate Decision, which will be released on October 28. FedWatch Tool indicates that there is a 89.5% chance that Fed will leave the federal funds rate unchanged. The market continues to expect that Fed will raise the rate at the meeting in December.
Treasury yields were mixed in today’s trading session. The yield of 2-year Treasuries climbed above the 4.71% level, while the yield of 10-year Treasuries settled below 4.98%. Treasury yields dynamics did not have a material impact on gold markets today.
U.S. dollar gained some ground against a broad basket of currencies as traders focused on Middle East tensions and prepared for Fed decision. Stronger dollar did not put pressure on the price of gold as traders decided to buy the dip after the recent pullback.
Currently, gold is trying to settle above the support level at $4000 – $4020. In case this attempt is successful, gold will head towards the nearest resistance level, which is located in the $4160 – $4180 range. A successful test of this level will push gold towards the 50 MA at $4294.
Silver Moves Away From Session Lows
Silver has also managed to gain some ground as gold/silver ratio remained stuck near the 74.00 level. If gold/silver ratio stays above 74.00, it will head towards the 75.00 level, which will be bearish for silver.
Silver has recently made several attempts to settle below the $53.00 level but these attempts yielded no results. In case silver settles above $54.00, it will head towards the resistance at $56.00 – $57.00. A successful test of this level will push silver towards the resistance at $61.00 – $62.00.
On the support side, a move below the $53.00 level will open the way to the test of the support at $51.00 – $52.00. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
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See all Gold forecastsPlatinum Tests New Lows As Pullback Continues
Platinum continued its attempts to settle below the support level at $1520 – $1540. Palladium markets were up by +0.7%, but this move did not provide support to platinum.
In case platinum manages to settle below the $1520 level, it will head towards the support level at $1440 – $1460. RSI is close to the oversold territory, but there is enough room to gain momentum in the near term.
On the upside, platinum needs to settle back above $1540 to have a chance to gain upside momentum in the near term. In this case, platinum will head towards the resistance at $1600 – $1620.
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