Gold (XAUUSD), Silver, Platinum Forecasts – Gold Gains Ground Ahead Of Fed Decision

Gold Tests Resistance At $4370 – $4390

Gold continues to move higher as traders prepare for the release of Fed Interest Rate Decision. The Fed is expected to keep rates unchanged, but first comments from new Fed Chair Warsh may have a material impact on market dynamics.

Traders will also focus on FOMC Economic Projections. The key question is whether Fed believes that the inflationary impact of the war in the Middle East is a long-term phenomenon or a short-term problem.

Treasury yields were mixed ahead of Fed decision. The yield of 2-year Treasuries climbed towards the 4.07% level, while the yield of 10-year Treasuries pulled back below 4.44%. Dynamics of Treasury yields did not have a material impact on gold markets in today’s trading session.

U.S. dollar gained ground against a broad basket of currencies as traders reacted to the strong Retail Sales report. Interestingly, stronger dollar did not put pressure on gold prices.

Oil markets remained under pressure after the strong sell-off as traders bet that the Strait of Hormuz would be reopened soon. Falling oil prices provided material support to gold markets as lower energy prices could make the Fed less hawkish.

From the technical point of view, gold continues its attempts to settle above the resistance at $4370 – $4390. In case gold manages to settle above the $4390 level, it will head towards the next resistance, which is located in the $4580 – $4600 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Silver Gains Ground As Traders Wait For Fed Decision

Silver moved higher as traders focused on the strong performance of gold markets. Gold/silver ratio pulled back towards the 61.50 level, providing additional support to silver. A move below the 50 MA at 60.69 will push gold/silver ratio towards the 58 level, which will be bullish for silver markets.

Currently, silver is trying to settle above the resistance at $71.00 – $72.00. In case this attempt is successful, silver will head towards the 50 MA at $75.36. A move above the 50 MA will open the way to the test of the next resistance level at $78.00 – $79.00.

On the support side, silver needs to settle back below the $69.00 level to gain downside momentum in the near term. A move below $69.00 will push silver towards the support level at $65.00 – $66.00.

Platinum Pulls Back Amid Profit-Taking

Platinum is losing ground as traders take some profits off the table after the strong rebound from multi-month lows. Palladium markets are up by +0.5%, which is neutral for platinum.

If platinum pulls back below the $1750 level, it will head towards the nearest support level at $1680 – $1700. A move below $1680 will push platinum towards recent lows near the $1630 level.

On the upside, a successful test of the resistance at $1780 – $1800 will open the way to the test of the resistance level at $1880 – $1900.

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