Gold (XAUUSD), Silver, Platinum Forecasts – Gold Dives 1.5% As Oil Prices Jump

Gold Retreats As Traders Reduce Bets On U.S. – Iran Deal

Gold is losing ground as traders focus on the strong rally in the oil markets. Oil gained 4% as U.S. and Iran exchanged strikes. U.S. – Iran negotiations continue, and traders worry that they may take weeks.

Recent reports indicate that U.S. and Iran are trying to extend the ceasefire and craft a deal that would reopen the Strait of Hormuz and lift the naval blockade of Iranian ports. The future of Iran’s nuclear program, which was the key reason for the military operation in the Middle East, is expected to be negotiated later.

Meanwhile, Israel’s Prime Minister Benjamin Netanyahu said that the country will intensify strikes against Hezbollah in Lebanon. Israel believes that its operation against Hezbollah is not part of a ceasefire deal between Iran and U.S. Iran insists that Israel should stop its military actions in Lebanon. The conflict between Israel and Hezbollah could be a significant obstacle on the way to the comprehensive deal between U.S. and Iran.

Treasury yields pulled back, but this move did not provide support to gold prices. U.S. bond markets were closed yesterday, so today’s pullback has been already priced in.

U.S. dollar gained some ground against a broad basket of currencies as demand for safe-haven assets increased. Stronger dollar is bearish for gold and other dollar-denominated commodities.

The technical picture remains unchanged as gold is stuck near the resistance level at $4530 – $4550. In case gold manages to settle above the $4550 level, it will head towards the next resistance at $4660 – $4680. On the support side, a move below the $4450 level will push gold towards the support at $4350 – $4370.

Silver Moves Lower As Gold/Silver Ratio Rebounds

Silver pulled back as gold/silver ratio climbed towards the 59.00 level. Investors’ appetite for risk declined, which was bearish for silver markets.

Currently, silver is trying to settle back below the 50 MA at $75.83. In case this attempt is successful, silver will move towards the next support, which is located in the $71.00 – $72.00 range.

On the upside, silver needs to settle above the resistance at $78.00 – $79.00 to gain sustainable upside momentum in the near term. In this case, silver will head towards the next resistance level at $85.00 – $86.00.

Platinum Stays Range-Bound

Platinum is moving lower amid broad pullback in precious metals markets. Palladium markets are down by -1.5%, which is bearish for platinum.

Trades are worried that high oil prices will hurt economic growth and reduce demand for platinum. Thus, rising geopolitical tensions serve as a bearish catalyst for platinum markets.

From the technical point of view, platinum remains stuck below the 50 MA at $1984. In case platinum manages to settle above the 50 MA, it will move towards the next resistance level, which is located in the $2040 – $2060 range.

On the support side, a move below the support level at $1880 – $1900 will open the way to the test of the next support at $1780 – $1800.

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