Gold (XAUUSD), Silver, Platinum Forecasts – Gold Dives As Traders Worry About Hawkish Central Banks

Gold Retreats As Traders Worry About Rising Yields

Gold is losing ground despite the strong sell-off in the oil markets. Oil prices are down by more than 4% as traders bet on Iran deal.

President Trump has recently said that he was not satisfied in Iran talks, but traders bet that he will ultimately agree to a deal. Trump also added that nobody would control the Strait of Hormuz and that it would be open to everybody.

Interestingly, Iranian TV claimed that a draft of the interim peace deal has been already prepared. According to the Iranian report, the Strait of Hormuz would return to normal operations within a month. The U.S. has denied the report.

Iran has previously said that it would oversee shipping in the Strait of Hormuz together with Oman. That said, Iran has recently stopped talking about a toll system in the Strait of Hormuz and discussed potential payments for navigation services.

Falling oil prices did not boost demand for risk assets and did not provide any support to gold markets. it looks that gold traders are focused on global central bank policy outlook. Traders are worried that central banks will be forced to raise rates to fight inflation, and the potential peace deal would not change the outlook. Higher yields are bearish for gold that pays no interest.

U.S. dollar gained ground against a broad basket of currencies in today’s trading session, putting additional pressure on gold markets.

Gold failed to settle above the resistance at $4530 – $4550 and pulled back towards the $4450 level. In case gold manages to settle below $4450, it will move towards the support level, which is located in the $4350 – $4370 range.

Silver Moves Lower As Gold/Silver Ratio Rebounds

Silver is losing ground as gold/silver ratio climbed above the 59.50 level. In case gold/silver ratio stays above 59.50, it will head towards the 50 MA at 61.31, which will be bearish for silver.

Silver did not manage to settle above the resistance level at $78.00 – $79.00 and declined below the 50 MA at $75.76. If silver stays below the 50 MA, it will head towards the nearest support level, which is located in the $71.00 – $72.00 range.

A successful test of the support at $71.00 – $72.00 will push silver towards the next support at $65.00 – $66.00. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

Platinum Tests Support At $1880 – $1900

Platinum moved lower amid broad pullback in precious metals markets. Interestingly, palladium markets were mostly flat in today’s trading session.

From the technical point of view, platinum attempts to settle below the support at $1880 – $1900. This support level has been tested many times and proved its strength.

In case platinum declines below the $1880 level, it will move towards the next support at $1780 – $1800. A move below the $1780 level will open the way to the test of the $1700 level.

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