Gold (XAUUSD), Silver, Platinum Forecasts – Gold Climbs Above $4100 As Dollar Dives

Gold Moves Higher As Traders Focus On Dollar’s Pullback

Gold gains ground as traders focus on the strong pullback of the U.S. dollar. The American currency is moving lower as forex traders react to the weaker-than-expected GDP Growth Rate report. The report showed that GDP Growth Rate was +1.5% in the second quarter, compared to analyst forecast of 2.1%.

The Bank of Japan intervened to support the yen, putting additional pressure on the U.S. dollar. BoJ intervention served as an additional positive catalyst for gold markets.

Treasury yields pulled back as bond traders remained focused on yesterday’s Fed decision and comments from Fed Chair Warsh. The yield of 2-year Treasuries declined below the 4.23% level, while the yield of 10-year Treasuries settled near 4.66%. Falling Treasury yields provided support to gold that pays no interest.

Currently, gold is trying to settle above the $4100 level. In case this attempt is successful, gold will head towards the nearest resistance, which is located in the $4180 – $4200 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, a successful test of the support level at $4020 – $4040 will push gold towards the next support level at $3930 – $3950.

Silver Gains Ground As Gold/Silver Ratio Declines

Silver moves higher as gold/silver ratio pulled back below the 70.00 level. From a big picture point of view, gold/silver ratio stays range-bound. Recent attempts to settle above the 70.00 level yielded no results, which was bullish for silver markets.

From the technical point of view, silver failed to settle below the support at $56.00 – $57.00 and is moving towards the $59.00 level. In case silver climbs above $59.00, it will head towards the psychologically important $60.00 level. A move above $60.00 will push silver towards the nearest resistance at $61.00 – $62.00. If silver manages to settle above the $62.00 level, it will head towards the 50 MA at $64.00.

On the support side, silver needs to settle below the support at $56.00 – $57.00 to have a chance to gain downside momentum in the near term. This support level has been tested many times and proved its strength. A successful test of the support at $56.00 – $57.00 will push silver towards the next support at $51.00 – $52.00.

Platinum Tests The $1650 Level

Platinum rallied as traders focused on weaker dollar and reacted to the pullback in the oil markets. Oil prices are down by -1% as traders take some profits off the table after the strong rally. Palladium markets gained +3.7% in today’s trading session, providing additional support to platinum.

Platinum climbed above the support at $1600 – $1620 and is trying to settle above the $1650 level. In case this attempt is successful, platinum will head towards the nearest resistance level at $1680 – $1700. A move above the $1700 level will indicate that platinum is ready to gain additional upside momentum.

On the support side, a move below the $1600 level will open the way to the test of the $1550 level.

If you’d like to know more about how to trade gold and silver, please visit our educational area.