Gold (XAUUSD), Silver, Platinum Forecasts – Gold Gains Ground Amid Rising Appetite For Risk

Gold Tests New Highs

Gold gained ground as traders reacted to ceasefire in the Middle East. U.S. and Iran agreed to a two-week ceasefire, which should provide sufficient time to negotiate a peace deal.

Oil markets suffered a sell-off as traders reacted to the news. WTI oil and Brent oil settled near the $95.00 level. It should be noted that oil prices moved away from recent lows as Israel continued its operation against Hezbollah in Lebanon.

Iran believes that Israel-Hezbollah conflict is part of the ceasefire deal. Israel plans to continue its operations in Lebanon. Iran blocked the Strait of Hormuz again due to Israel’s actions. Put simply, it’s not easy to achieve a true ceasefire in the Middle East, but markets bet that the situation will normalize in the near term.

Traders view the ceasefire as a major breakthrough and are ready to buy riskier assets. Gold continues to trade as a riskier asset which benefits from rising appetite for risk, so Middle East ceasefire serves as a material bullish catalyst for gold prices.

U.S. dollar pulled back against a broad basket of currencies as demand for safe-haven assets declined. Treasury yields moved lower as bond traders focused on the strong sell-off in the oil markets. Weaker dollar and falling Treasury yields provided additional support to gold markets.

Gold made an attempt to settle above the resistance level at $4860 – $4880 but lost momentum and pulled back towards the $4750 level. If gold settles back below $4750, it will move towards the nearest support, which is located in the $4660 – $4680 range.

On the upside, a move above the $4880 level will push gold towards the 50 MA at $4929. In case gold climbs above the 50 MA, it will head towards the next resistance level at $4980 – $5000.

Silver Gains Ground, Supported By Middle East Ceasefire

Silver rallied as gold/silver ratio declined below the 63.00 level. Gold/silver ratio is moving lower amid rising appetite for risk. In case gold/silver ratio settles below the 61.50 level, it will gain additional downside momentum, which will be bullish for silver.

The nearest resistance level for silver is located in the $78.00 – $79.00 range. If silver climbs above the $79.00 level, it will head towards the 50 MA at $80.90. A move above the 50 MA will open the way to the test of the resistance at $84.00 – $85.00. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support isde, a move below the support at $71.00 – $72.00 will signal that silver is ready to gain downside momentum.

Platinum Tests Resistance At $2040 – $2060

Platinum soared amid strong demand for precious metals. Falling oil prices are bullish for platinum, which is dependent on industrial demand.

Palladium markets were up by more than 8%, providing significant support to platinum prices.

Currently, platinum is trying to settle above the resistance level at $2040 – $2060. If this attempt is successful, platinum will move towards the next resistance at $2210 – $2230. A move above the $2230 level will push platinum towards the $2430 level.

If you’d like to know more about how to trade gold and silver, please visit our educational area.