Gold (XAUUSD), Silver, Platinum Forecasts – Gold Dives 2% As Oil Prices Rally

Gold Is Under Pressure As Oil Markets Soar 7.5%

Gold is losing ground as traders focus on the major rally in the oil markets. Oil prices are up by 7.5% as Houthis attacked Saudi Arabia’s tankers. Brent oil climbed above the psychologically important $100 level as traders prepared for major supply disruptions. The Strait of Hormuz is de-facto closed, and the Bab al-Mandab Strait may be shut by the Houthis.

Treasury yields gained ground as bond traders bet that Fed will be forced to raise rates to fight inflation triggered by high oil prices. The yield of 2-year Treasuries settled above the 4.35% level, while the yield of 10-year Treasuries moved towards 4.70%. FedWatch Tool indicates that there is a 35.8% chance that Fed will raise rates at the meeting next week. The probability of a rate hike in September is estimated at 82.7%. Rising Treasury yields and hawkish Fed policy outlook is bearish for gold that pays no interest.

U.S. dollar gained ground against a broad basket of currencies as demand for safe-haven assets increased amid rally in the oil markets. Stronger dollar put additional pressure on gold markets in today’s trading session.

Currently, gold is trying to settle back below the support at $4020 – $4040. In case this attempt is successful, gold will move towards the next support level, which is located in the $3930 – $3950 range. A move below the $3930 level will indicate that gold markets are ready to gain additional downside momentum. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Silver Dives As Gold/Silver Ratio Climbs Above 70

Silver is under strong pressure as gold/silver ratio settled back above the 70.00 level. In case gold/silver ratio stays above 70.00, it will head towards recent highs near the 72.50 level, which will be bearish for silver.

From the technical point of view, silver pulled back towards the support level at $56.00 – $57.00. If silver manages to settle below the $56.00 level, it will move towards the next support level at $51.00 – $52.00.

On the upside, silver needs to settle above the resistance level at $61.00 – $62.00 to have a chance to gain sustainable upside momentum in the near term. A move above $62.00 will push silver towards the 50 MA at $65.79.

Platinum Retreats As Demand For Precious Metals Falls

Platinum is losing ground amid broad pullback in precious metals markets. Palladium markets are down by -3%, which is bearish for platinum.

Platinum failed to settle above the $1650 level and pulled back below $1600. If platinum stays below the $1600 level, it will head towards the $1550 level. A move below $1550 will open the way to the test of the support at $1500 – $1520.

On the upside, a move above $1650 will push platinum towards the resistance at $1680 – $1700. In case platinum settles above $1700, it will head towards the 50 MA at $1727.

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