Gold (XAUUSD), Silver, Platinum Forecasts – Gold Gains Ground As Oil Markets Retreat

Gold Tested The $4100 Level

Gold gained some ground as traders reacted to the strong sell-off in the oil markets. Oil prices are down by -9% as traders focus on de-escalation in the Middle East. U.S. and Iran halted strikes and look ready to start negotiations. Falling oil prices boosted investors’ risk appetite, which was bullish for gold markets.

Treasury yields pulled back as traders focused on the dynamics of oil markets. The yield of 2-year Treasuries declined towards the 4.32% level, while the yield of 10-year Treasuries settled near 4.65%. It should be noted that the pullback was not strong as bond traders remained focused on hawkish Fed policy outlook.

From a big picture point of view, traders believe that Fed will raise rates to fight inflation. The pullback in the oil markets does not change the outlook, so it’s not surprising to see that gold prices have pulled back from session highs. Rising interest rates are bearish for gold that pays no interest.

U.S. dollar was swinging between gains and losses against a broad basket of currencies in today’s trading session. The dynamics of the American currency did not have a material impact on gold prices today.

Gold failed to settle above the $4100 level and pulled back towards the $4070 level. In case gold settles below $4070, it will head towards the nearest support, which is located in the $4020 – $4040 range. A move below the support at $4020 – $4040 will open the way to the test of the next support level at $3930 – $3950.

On the upside, a move above the $4100 level will push gold towards the resistance level at $4180 – $4200. In case gold climbs above $4200, it will get to the test of the 50 MA at $4221.

Silver Pulled Back From Session Highs

Silver pulled back from session highs as gold/silver ratio climbed above the 69.50 level. If gold/silver ratio settles above 70.00, it will head towards recent highs near the 72.50 level, which will be bearish for silver.

The nearest support level for silver is located in the $56.00 – $57.00 range. If silver manages to settle below the $56.00 level, it will gain additional downside momentum and move towards the next support at $51.00 – $52.00. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Platinum Climbed Back Above The $1600 Level

Platinum gained ground as traders bet that lower oil prices will boost demand for platinum, which is dependent on industrial demand. Palladium prices are up by +3.8%, providing additional support to platinum markets.

In case platinum manages to settle above the $1650 level, it will head towards the nearest resistance level, which is located in the $1680 – $1700 range. On the support side, a move below the $1600 level will push platinum towards the support at $1550. If platinum pulls back below the $1550 level, it will head towards the support level at $1500 – $1520.

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