Gold (XAUUSD), Silver, Platinum Forecasts – Gold Climbs Back Above $5200 As Oil Retreats

Gold Moves Higher As Oil Prices Dive

Gold gains ground as traders focus on the pullback in the oil markets and react to the developments in the Middle East.

U.S. said that it was conducting intense strikes Iran, while the latter showed no signs of capitulation. Recently, President Trump hinted that the operation against Iran could end soon. However, all sides of the conflict continue to fight actively. Iran noted that it did not seek truce.

WTI oil pulled back towards the $80.00 level as traders focused on Saudi Arabia’s attempt to export oil through a Red Sea port of Yanbu. Brent oil declined below the $85.00 level amid broad pullback in the oil markets.  It should be noted that gold has shown bullish reaction to falling oil prices in recent trading sessions.

U.S. dollar moved lower as demand for safe-haven assets declined. In recent weeks, gold has benefited from rising risk appetite. Thus, declining demand for safe-haven assets served as a bullish catalyst for gold markets.

Treasury yields moved higher as bond traders worried that rising oil prices will trigger inflation. The yield of 2-year Treasuries climbed above the 3.55% level, while the yield of 10-year Treasuries settled above 4.10%. This move did not put pressure on gold markets as traders focused on the sell-off in the oil markets.

Currently, gold is trying to settle above the $5200 level. In case this attempt is successful, gold will head towards the nearest resistance, which is located in the $5430 – $5450 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Silver Tests New Highs As Gold/Silver Ratio Pulls Back

Silver is moving higher as gold/silver ratio pulled back below the 59 level. From the technical point of view, gold/silver ratio is heading towards the 50 MA at 57.38. A move below the 50 MA will provide gold/silver ratio with an opportunity to gain additional downside momentum, which will be bullish for silver.

Silver climbed above the resistance at $86.00 – $87.00 and is trying to settle above the psychologically important $90.00 level. If silver manages to settle above $90.00, it will move towards the next resistance level at recent highs at $95.00 – $96.00.

On the support side, a move below the $86.00 level will push silver back towards the support at $78.00 – $79.00.

Platinum Tests Resistance At $2245 – $2265

Platinum gains ground amid broad rally in precious metals markets. The pullback in the oil market served as the key bullish catalyst for platinum, which is dependent on industrial demand.

Traders bet that oil prices will continue to move lower, which will be bullish for global economy. Previously, traders worried that high oil prices will put pressure on economic growth and hurt demand for platinum.

Interestingly, palladium markets were down by about 0.6% despite the sell-off in the oil markets.

From the technical point of view, platinum attempts to settle above the nearest resistance level, which is located in the $2245 – $2265 range. If platinum manages to settle above $2265, it will move towards the next resistance at $2430 – $2450.

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