Gold (XAUUSD), Silver, Platinum Forecasts – Gold Dives Below $5000 Amid Broad Sell-Off In Commodity Markets

Gold Markets Are Under Strong Pressure

Gold is losing ground as traders stay focused on U.S. job market data and wait for tomorrow’s inflation report.

Treasury yields are losing ground as traders search for safe-haven assets amid broad pullback in the markets. Falling Treasury yields did not provide support to gold prices today. It should be noted that gold traders have mostly ignored yields and Fed policy outlook in recent months.

U.S. equity markets are under strong pressure amid sell-off in the tech sector. This sell-off could have put pressure on gold markets by forcing traders to sell their profitable positions in gold to cover losses elsewhere.

I’d also note that USD/JPY moved from 157.50 to 152.50 in just four trading sessions, which is a huge move for the forex market. The Japanese yen is heavily used in global carry trade, so drastic moves of this currency can have a global impact.

Recent volatility of the yen shows that the situation has not calmed down after the initial move in late January, which was triggered by intervention risks. The troubles of USD/JPY traders could have served as a catalyst for today’s pullback in gold markets.

Gold failed to settle above the resistance at $5100 – $5120 and declined towards the support at $4880 – $4900. In case gold manages to settle below the $4880 level, it will head towards the next support, which is located in the $4670 – $4690 level.

Traders should note that a move below the $4880 level may trigger a wave of profit-taking by traders who have been buying the strong pullback in early February. In this scenario, gold may quickly get to the test of the $4670 – $4690 area.

Silver Collapses Again As Bulls Rush For Exits

Silver is under strong pressure as gold/silver ratio jumped above the 64.00 level, which was bearish for silver. In case gold/silver ratio moves towards recent highs near the 72.50 level, silver will test new lows.

The sell-off was fast and has certanly caught bulls off guard. The key question is whether buyers emerge near the $75.00 level, which may look like a deal as silver tested the $86.00 level yesterday.

However, the current sell-off may be caused by global liquidity problems and margin calls, which means that bulls may not have sufficient firepower to stop the pullback at current levels.

Currently, silver is trying to settle below the support at $78.00 – $79.00. In case this attempt is successful, silver will move towards the next support level, which is located in the $71.00 – $72.00 range.

A move below the $71.00 level will show that silver markets are in a state of panic. More margin calls and forced sales should be expected if silver declines below the psychologically important $70.00 level.

On the upside, silver needs to get back above the $80.00 level to have a chance to gain upside momentum in the near term. In this case, silver will move towards the nearest resistance at $87.00 – $88.00.

Platinum Tested The $2000 Level

Platinum is losing ground amid broad pullback in precious metals markets. Palladium markets, which are down by 3.5%, have also found themselves under strong pressure.

Platinum attempts to settle below the nearest support level at $2040 – $2060. In case this attempt is successful, platinum will move towards the next support at $1880 – $1900.

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