Gold (XAUUSD), Silver, Platinum Forecasts – Gold Gains Ground As Treasury Yields Fall

Gold Attempts To Settle Above $4500

Gold gains ground as traders stay focused on the situation in the Middle East and react to the pullback in Treasury yields.

The yield of 2-year Treasuries pulled back below the 3.85% level, while the yield of 10-year Treasuries declined below 4.35%. Falling Treasury yields provide support to gold and other precious metals that pay no interest.

U.S. dollar gained ground against a broad basket of currencies as demand for safe-haven assets increased. Intrestingly, stronger dollar did not put pressure on gold prices today.

The key question is whether gold has started to trade like a safe-haven asset again, or recent strength could be explained by falling Treasury yields.

President Donald Trump has recently said that the U.S. could attack energy plants and Kharg island if Iran did not agree to a deal. These comments provided support to Brent oil, which tested the $117 level. Today, high oil prices did not put pressure on precious metals markets.

Gold received strong support above the $4400 level and continues its attempts to settle above $4500. If gold manages to settle above the $4500 level, it will move towards the next resistance level, which is located in the $4660 – $4680 range. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in the near term.

Silver Tests Resistance At $71.00 – $72.00 As Rebound Continues

Silver climbed above the $70.00 level as gold/silver ratio pulled back towards the 64.00 level. In case gold/silver ratio settles below 64.00, it will move towards recent lows at 61.50, which will be bullish for silver.

It should be noted that recent economic data from the EU showed that high energy prices have already started to put material pressure on the European economy. The situation in some Asian countries is challenging as well. However, silver bulls are ready to bet that industrial demand would not decline in the near term, while investment demand will grow.

From the technical point of view, silver is trying to settle above the resistance at $71.00 – $72.00. In case this attempt is successful, silver will head towards the next resistance level, which is located in the $78.00 – $79.00 range.

Platinum Moves Higher Amid Rising Demand For Precious Metals

Platinum continues its attempts to settle above the resistance at $1880 – $1900 as traders ignore strong dollar and focus on the pullback in Treasury yields.

Palladium markets are up by 3% in today’s trading session, which is bullish for platinum.

Platinum is dependent on industrial demand so the market is sensitive to the duration of the conflict in the Middle East. Any signs indicating that Iran is ready for a deal will likely provide material support to platinum prices.

If platinum manages to settle above the resistance level at $1880 – $1900, it will move towards the next resistance level, which is located in the $2040 – $2060 range. A move above the $2060 level will push platinum towards the 50 MA at $2154.

On the support side, platinum needs to settle below the support level at $1785 – $1805 to gain additional downside momentum in the near term. In this case, platinum will head towards recent lows near the $1700 level.

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