Gold (XAUUSD), Silver, Platinum Forecasts – Gold Gains Ground As Dollar Moves Away From Yearly Highs

Gold Moves Higher As Dollar Declines

Gold continues to rebound as traders focus on U.S. dollar’s pullback and falling Treasury yields.

U.S. dollar moved lower against a broad basket of currencies as traders reacted to the Michigan Consumer Sentiment report. The report indicated that Consumer Sentiment increased from 44.8 in May to 49.5 in June, compared to analyst forecast of 50.

Importantly, year-ahead inflation expectations decreased from 4.8% in May to 4.6% in June. Inflation expectations remain elevated.

Treasury yields pulled back as traders focused on the strong sell-off in the oil markets. The yield of 2-year Treasuries declined below the 4.10% level, while the yield of 10-year Treasuries pulled back below 4.38%.

It remains to be seen whether the strong pullback in the oil markets will provide additional support to gold in the upcoming trading sessions. High oil prices have already changed Fed policy outlook, and it is not clear whether the pullback in oil prices will be able to stop the potential rate hike this year.

Gold climbs above the resistance at $4020 – $4040 and is heading towards the $4100 level. If gold manages to settle above $4100, it will head towards the next resistance at $4180 – $4200. RSI has recently moved away from the oversold territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

On the support side, a move below the recent lows near the $3960 level will open the way to the test of the support at $3880 – $3900.

Silver Rebounds As Traders Buy The Dip

Silver is moving higher as gold/silver ratio pulled back below the 69.00 level. If gold/silver ratio stays below 69.00, it will head towards the 66.00 level, which will be bullish for silver.

The nearest resistance level for silver is located in the $61.00 – $62.00 range. if silver manages to settle above the $62.00 level, it will head towards the next resistance at $65.00 – $66.00. A move above the $66.00 level will open the way to the test of the $71.00 level.

On the support side, silver needs to settle below the support at $56.00 – $57.00 to gain additional downside momentum. In this case, silver will head towards the $52.00 level. RSI is in the moderate territory, so there is enough room to gain momentum in the near term.

Platinum Tests Resistance At $1600 – $1620

Platinum has also gained ground amid rising demand for precious metals. Palladium was up by +2.6%, which was bullish for platinum.

From a big picture point of view, falling oil prices are bullish for platinum, which is dependent on industrial demand. However, the previous rally in the oil markets has already dealt damage to global economy, so it remains to be seen whether industrial demand for platinum would grow in case oil prices move lower.

Currently, platinum is trying to settle above the resistance at $1600 – $1620. In case this attempt is successful, platinum will move towards the next resistance level at $1680 – $1700. A move above the $1700 level will push platinum towards the $1780 level.

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