Gold Tests Support At $3890 – $3910
Gold is under strong pressure as traders focus on the sell-off in U.S. equity markets, which was triggered by disappointing results from Intel. The company’s report indicated that AI-related increase in the price of laptops and desktops put significant pressure on sales.
It looks that many traders are forced to raise money amid sell-off in the stock market, creating selling pressure in gold markets.
From a big picture point of view, traders are worried that AI is a bubble that will burst and put major pressure on all markets, including gold.
Treasury yields moved lower as demand for safe-haven U.S. Treasuries increased. The yield of 2-year treasuries declined towards the 4.58% level, while the yield of 10-year Treasuries pulled back towards 4.93%. Not surprisingly, the pullback in Treasury yields had no impact on gold markets as traders were focused on the major pullback in U.S. equity markets.
U.S. dollar gained some ground against a broad basket of currencies, supported by safe-haven buying. Usually, stronger dollar is bearish for dollar-denominated commodities as it makes them more expensive for buyers who have other currencies. However, strong dollar did not serve as a material catalyst for gold today.
Currently, gold is trying to settle below the support level at $3890 – $3910. In case this attempt is successful, gold will head towards the next support, which is located in the $3780 – $3800 range. RSI has just moved into oversold territory, but there is enough room to gain additional downside momentum in the near term.
Silver Dives 6% As Gold/Silver Ratio Moves Above 79
Silver suffered a strong sell-off as gold/silver ratio climbed above the 79.00 level. If gold/silver ratio stays above 79.00, it will head towards the 80.00 level, which will be bearish for silver. Gold/silver ratio is moving higher as demand for riskier assets declines.
Silver moved below the support at $51.00 – $52.00 and is trying to settle below the $49.00 level. In case silver manages to settle below $49.00, it will head towards the next support level, which is located in the $47.00 – $48.00 range. RSI is in the oversold territory, so the risks of a rebound are increasing.
On the upside, silver needs to settle back above the $52.00 level to have a chance to gain upside momentum in the near term. In this case, silver will head towards the $55.00 level.
Gold Price Forecast
Every new Gold analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all Gold forecastsPlatinum Is Under Strong Pressure
Platinum is losing ground amid broad sell-off in precious metals markets. Palladium markets are down by -2.5%, which is bearish for platinum.
Platinum moved below the support level at $1440 – $1460 and attempts to settle below the $1410 level. If platinum manages to settle below $1410, it will head towards the next support at $1350 – $1370. Traders should note that platinum markets may stay correlated with U.S. equity markets in the upcoming trading sessions.
If you’d like to know more about how to trade gold and silver, please visit our educational area.