Gold Moves Higher On Iran Deal Hopes
Gold gained ground as traders ignored rising Treasury yields and focused on the strong pullback in the oil markets.
Brent oil declined by -4% as President Trump said that it was “highly unlikely” that he would order massive strikes against Iran. Oil traders believe that U.S. and Iran are moving towards a deal. Falling oil prices raised demand for risk assets, which was bullish for gold and other precious metals.
Treasury yields moved higher as traders sold bonds amid falling demand for safe-haven assets. The yield of 2-year Treasuries climbed above the 4.56% level, while the yield of 10-year Treasuries settled near 4.88%.
FedWatch Tool indicates that there is a 84.5% probability that Fed will raise rates at the next meeting in December. At this point, gold traders ignore hawkish Fed policy outlook and focus on the pullback in the oil markets, which may change the outlook.
U.S. dollar pulled back against a broad basket of currencies as traders reacted to the sell-off in the oil markets. Weaker dollar provided additional support to gold prices today.
Currently, gold is trying to settle above the $4100 level. In case this attempt is successful, gold will move towards the nearest resistance, which is located in the $4180 – $4200 range.
On the support side, the nearest support level for gold is located in the $4000 – $4020 range. A successful test of this level will open the way to the test of the next support at $3890 – $3910.
Silver Gains Ground As Gold/Silver Ratio Drops Below 78
Silver is moving higher as gold/silver ratio pulled back below the 78.00 level. Gold/silver ratio has recently made several attempts to settle above the 80.00 level but these attempts yielded no results. If gold/silver ratio climbs above 80.00, it will gain additional upside momentum, which will be bearish for silver.
Silver climbed above the resistance level at $51.00 – $52.00 and is trying to settle above the $53.00 level. In case silver manages to settle above $53.00, it will head towards the $55.00 level. A move above $55.00 will push silver towards the resistance level at $56.00 – $57.00.
On the support side, silver needs to settle below the psychologically important $50.00 level to have a chance to gain downside momentum in the near term. In this case, silver will head towards the support at $47.00 – $48.00.
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See all Gold forecastsPlatinum Tests New Highs As Rebound Continues
Platinum gains ground amid rising demand for precious metals. Palladium markets are up by +0.1%, which is neutral for platinum.
From the technical point of view, platinum is trying to settle above the resistance level at $1520 – $1540. This resistance level has been tested many times and proved its strength. In case platinum manages to settle above $1540, it will head towards the resistance at $1600 – $1620.
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