Gold (XAUUSD), Silver, Platinum Forecasts – Gold Dives 2.5% As Oil Markets Rally

Gold Tests Support At $4400 – $4420

Gold is losing ground as traders focus on the strong rally in the oil markets. WTI oil climbed above the $95.00 level, while Brent oil tested the $109.00 level as traders bet on additional escalation in the Middle East.

Iran has officially responded to the U.S., declining the 15-point plan and presenting its own proposals. These proposals include reparations from U.S. and Israel, so the conflict is set to continue. At this point, the positions of the sides of the conflict are too far away from each other.

President Trump threatened to escalate the conflict in case Iran did not agree to U.S. terms. Iran has already rejected the U.S. plan, so traders bet that U.S. will intensify the operation against Iran over the weekend.

Many analysts believe that tbe probability of a ground operation in Iran is rising on a daily basis. Such an operation would mark a huge escalation of the conflict and will have unpredictable consequences.

Gold continues to trade as a riskier asset amid Middle East war. Traders sell gold and other precious metals and choose the safety of the U.S. dollar.

Currently, gold is trying to settle below the support at $4400 – $4420. In case this attempt is successful, gold will move towards the next support at recent lows at $4100 – $4120. RSI is in the oversold territory, but there is enough room to gain additional downside momentum in the near term.

Silver Retreats As Demand For Riskier Assets Declines

Silver is under strong pressure as gold/silver ratio jumped towards the 65.00 level. If gold/silver ratio settles above 65.00, it will head towards recent highs near the 68.00 level, which will be bearish for silver.

Silver is sensitive to fluctuations of investors’ appetite for risk, so rising tensions in the Middle East serve as a significant negative catalyst for silver prices. If oil prices keep moving higher, silver will find itself under more pressure as traders will sell riskier assets.

From the technical point of view, silver failed to settle above the resistance at $71.00 – $72.00 and pulled back towards the $68.00 level. If silver settles below $68.00, it will move towards the nearest support, which is located in the $64.00 – $65.00 range. A successful test of the support at $64.00 – $65.00 will open the way to the test of the $61.00 level.

On the upside, silver needs to settle back above the $72.00 level to have a chance to gain sustainable upside momentum in the near term.

Platinum Is Under Strong Pressure Amid Demand Worries

Platinum retreats as traders focus on rising oil prices and worry that demand for platinum would decline due to the slowdown of the global economy. Palladium markets are down by more than 4%, which is also bearish for platinum.

The nearest support level for platinum is located in the $1785 – $1800 range. If platinum pulls back below the $1785 level, it will head towards the next support at $1685 – $1700. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

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