Gold (XAUUSD), Silver, Platinum Forecasts – Gold Gains 2% Despite Strong Dollar

Gold Tests New Highs As Rebound Continues

Gold continues to rebound as traders ignore strong dollar and rising oil prices.

U.S. dollar gained ground against a broad basket of currencies as traders focused on tensions in the Middle East. Iran rejected the 15-point plan that was proposed by the U.S and came out with a counterproposal.

Both the Iranian and the U.S. proposals look unrealistic, although the U.S. may achieve its goals in case of Iran’s capitulation.

WTI oil climbed back above the $90.00 level as traders reacted to geopolitical developments. Interestingly, this move did not put pressure on gold markets.

It remains to be seen whether gold has started to trade as a safe-haven asset again. There were too many leveraged bets in gold markets in previous months, and recent volatility has surely attracted speculative traders.

Treasury yields moved lower, providing some support to precious metals prices. The yield of 2-year Treasures pulled back towards the 3.88% level, while the yield of 10-year Treasuries declined below the 4.35% level. Falling Treasury yields are bullish for gold and other precious metals that pay no interest.

It should be noted that dynamics of yields did not have a major impact on precious metals markets in recent months as traders have mostly focused on geopolitics.

Currently, gold is trying to settle above the $4550 level. In case this attempt is successful, gold will head towards the nearest resistance, which is located in the $4660 – $4680 range. A move above the $4680 level will push gold towards the $4800 level.

On the support side, the nearest support for gold is located in the $4400 – $4420 range. In case gold declines below the $4400 level, it will head towards the support near recent lows at $4100 – $4120.

Silver Tested The $74.00 Level

Silver moved higher as traders focused on the strong performance of gold markets. Interestingly, rising oil prices did not put any pressure on silver markets today.

Industrial demand plays a key role in silver markets, so high energy prices are bearish for silver.  That said, it looks that speculative traders are ready to bet on silver’s rebound, which is bullish for silver markets.

From the technical point of view, silver continues its attempts to settle above the resistance level at $71.00 – $72.00. If silver manages to settle above the $72.00 level, it will move towards the next resistance at $78.00 – $79.00. RSI is in the moderate territory, so there is plenty of room to gain upside momentum in the near term.

Platinum Gained Some Ground As Traders Bet On A Rebound

Platinum made an attempt to settle above the $1980 level but lost momentum and pulled back towards the $1910 level. Palladium markets were down by -0.6% as traders focused on rising oil markets.

Platinum needs to stay above the resistance at $1880 – $1900 to gain upside momentum in the near term. A move above the $1980 level will push platinum towards the next resistance, which is located in the $2040 – $2060 range.

On the support side, a move below the $1880 level will open the way to the test of the nearest support at $1785 – $1805. It remains to be seen whether platinum traders will stay bullish in case oil prices continue to rebound after the recent pullback.

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