Gold (XAUUSD), Silver, Platinum Forecasts – Gold Dives 2% As Oil Prices Test New Highs

Gold Tests Support At $4880 – $4900

Gold retreats as traders focus on the rally in the oil markets and prepare for Fed decision, which will be released soon.

Brent oil rallied above the $108.00 level as Israel attacked Iran’s gas field. In turn, Iran said that it would attack oil facilities in the region. Companies in the Gulf have started to evacuate personnel in response to Iran’s threats.

Demand for safe-haven assets increased. Gold, which is a traditional safe-haven asset, has not benefited from rising demand for such assets in recent months. At this point, gold is trading like a riskier asset.

U.S. dollar gained ground against a broad basket off currencies ahead of Fed decision. Fed is expected to keep the federal funds rate unchanged, and traders will focus on FOMC Economic Projections and Powell’s comments.

The key question is whether Powell will be hawkish due to high energy prices. Most likely, rising energy prices will push inflation to higher levels, so Fed may be more hawkish than previously expected.

In case U.S. dollar gains more ground after Fed decision, gold will find itself under pressure.

Treasury yields moved higher as traders prepared for Fed decision. The yield of 2-year Treasuries climbed above the 3.70% level, while the yield of 10-year Treasuries settled above 4.22%. Rising Treasury yields are bearish for gold and other precious metals that pay no interest.

Silver Tests New Lows As Pullback Continues

Silver is losing ground as traders react to the pullback in gold markets and worry about rising oil prices.

Gold/silver ratio settled near the 63.00 level. In case gold/silver ratio continues to move higher, silver will find itself under pressure.

Currently, silver is trying to settle below the support at $78.00 – $79.00. In case this attempt is successful, silver will head towards the next support, which is located in the $71.00 – $72.00 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

On the upside, silver needs to settle back above the support at $78.00 – $79.00 to have a chance to gain upside momentum in the near term. A move above the $79.00 level will push silver towards the resistance at $86.00 – $87.00.

Platinum Moves Lower As Traders Wait For Fed Decision

Platinum pulled back amid broad sell-off in precious metals markets, which was driven by rising oil prices.

Palladium markets were down by almost 5%, serving as an additional bearish catalyst for platinum.

From the technical point of view, platinum attempts to settle below the support level at $2040 – $2060. If platinum manages to settle below this level, it will head towards the next support, which is located in the $1880 – $1900 range.

On the upside, a move above the $2100 level will open the way to the test of the resistance at $2245 – $2265.

Most likely, precious metals will be extremely sensitive to FOMC Economic Projections and Powell’s comments, so traders should be prepared for fast moves. Traders should also note that BoJ, BoE, and ECB will release their Interest Rate Decisions tomorrow. These decisions will also have a material impact on precious metals markets.

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