Gold (XAUUSD), Silver, Platinum Forecasts – Gold Gains Ground As Traders Focus On Dollar’s Pullback

Gold Moves Higher As Dollar Pulls Back

Gold gained some ground as traders focused on falling Treasury yields and reacted to U.S. dollar’s pullback.

Treasury yields moved lower as bond traders focused on the Producer Prices report from the U.S. The report indicated that PPI decreased by -0.3% month-over-month in June, compared to analyst forecast of 0%. Core PPI increased by +0.2%, while analysts expected that it would grow by +4%. Lower-than-expected PPI data put pressure on yields as traders reduced bets on hawkish Fed. Falling Treasury yields are bullish for gold that pays no interest.

U.S. dollar pulled back against a broad basket of currencies as traders focused on falling Treasury yields. Oil prices moved lower, reducing demand for safe-haven assets. The pullback in the oil markets put additional pressure on the U.S. dollar and provided support to gold markets.

FedWatch Tool indicates that there is a 89.8% probability that Fed will keep rates unchanged at the next meeting at the end of July. The market believes that there is a 43.9% probability of a rate hike in September. Rate hike probabilities declined after CPI and PPI reports, which was bullish for gold markets.

Gold failed to settle below the support level at $4020 – $4040 and is moving towards the $4100 level. In case gold climbs above $4100, it will head towards the resistance level at $4180 – $4200.

Silver Retreats As Gold/Silver Ratio Moves Above 70

Silver pulled back as gold/silver ratio climbed above the 70.00 level. In case gold/silver ratio stays above 70.00, it will head towards the 71.30 level, which will be bearish for silver.

Silver has recently made an attempt to settle below the support at $56.00 – $57.00 but lost momentum and rebounded towards the $58.00 level. The support at $56.00 – $57.00 has been tested many times and proved its strength. In case silver declines below the $56.00 level, it will gain additional downside momentum and move towards the next support at $51.00 – $52.00.

On the upside, a move above the $58.00 level will push silver towards the psychologically important $60.00 level. A move above $60.00 will open the way to the test of the resistance at $61.00 – $62.00.

Platinum Tests The $1650 Level

Platinum is moving higher as traders react to the pullback in the oil markets. Platinum is dependent on industrial demand, so falling oil prices serve as a bullish catalyst for the metal. Palladium markets are up by +0.2%, which is neutral for platinum.

From the technical point of view, platinum settled above the resistance level at $1600 – $1620 and is trying to settle above the $1650 level. In case this attempt is successful, platinum will move towards the resistance level at $1680 – $1700. A move above the $1700 level will open the way to the test of the 50 MA at 1785. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, platinum needs to settle back below the $1600 level to gain downside momentum in the near term. If platinum pulls back below $1600, it will head towards the support level at $1500 – $1520.

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