Gold (XAUUSD), Silver, Platinum Forecasts – Gold Climbed Back Above $5000

Gold Rallies After Yesterday’s Sell-Off

Gold rebounds as traders focus on U.S. inflation report. The report showed that Inflation Rate declined from 2.7% in December to 2.4% in January, compared to analyst forecast of 2.5%.

Falling Inflation Rate provides Fed with an opportunity to cut rates. Not surprisingly, Treasury yields moved lower as bond traders bet on dovish Fed. Falling Treasury yields are bullish for gold that pays no interest.

However, the U.S. dollar was mostly flat against a broad basket of currencies. This is a surprising development as falling Treasury yields should have put some pressure on the American currency.

It looks that forex traders doubt that Fed will start cutting rates until the end of Powell’s term.

Gold traders do not share such fears, so they rushed to buy gold after the release of encouraging inflation data.

From a big picture point of view, the market remains volatile. Traders stay nervous after the major sell-off from historic highs, although it is clear that gold resumed the previous bullish trend.

Gold received support in the $4880 – $4900 range and climbed back above the $5000 level. In case gold manages to settle above $5000, it will head towards the nearest resistance, which is located near recent highs at $5100 – $5120. A move above the $5120 level will open the way to the test of the $5450 level.

Silver Tests Resistance At $78.00 – $79.00

Silver gained ground as some traders were ready to buy the dip. Yesterday’s sell-off was strong, and it looks that traders remain cautious after the major move.

Gold/silver ratio pulled back below the 65.00 level, providing support to silver prices. Gold/silver ratio remains extremely volatile, complicating the picture for silver traders.

At this point, silver markets look weak compared to gold markets. Gold is moving higher, although this move is often disturbed by short-term sell-offs.

Meanwhile, silver failed to gain sustainable upside momentum and is jumping back and forth in a wide trading range. This is a challenging environment for silver bulls, although gold’s strength may ultimately provide additional support to silver.

Currently, silver is trying to settle back above the resistance at $78.00 – $79.00. In case this attempt is successful, silver will move towards the next resistance at $87.00 – $88.00. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

On the support side, a move below the $75.00 level will push silver towards the support level at $71.00 – $71.50.

Platinum Soars As Traders Buy The Dip

Platinum  gained strong upside momentum amid broad rally in precious metals, which was triggered by U.S. CPI report.

Palladium has also managed to rebound after yesterday’s sell-off, which was bullish for platinum.

From the technical point of view, platinum is trying to settle above the resistance at $2040 – $2060. If platinum manages to settle above the $2060 level, it will move towards the 50 MA at $2157. In case platinum climbs above the 50 MA, it will head towards the next resistance at $2245 – $2265.

On the support side, a move below the $2000 level will push platinum towards the nearest support, which is located in the $1880 – $1900. Such a move will signal that platinum has a significant chance to gain sustainable downside momentum in the near term.

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