Gold Moves Higher As Treasury Yields Fall
Gold continues its attempts to rebound as traders focus on the pullback in Treasury yields.
The yield of 2-year Treasuries pulled back towards the 4.76% level as traders rushed to buy U.S. debt after massive pullback. FedWatch Tool indicates that the probability of a rate hike at the next meeting in October declined to 30.4%.
The yield of 10-year Treasuries declined towards the 4.80% level, while the yield of 30-year Treasuries settled near 5.60%. Falling Treasury yields served as a positive catalyst for gold markets today.
U.S. dollar rallied against a broad basket of currencies and tested yearly highs. It looks that short-sellers were forced to start closing their positions as the move was strong. At this point, gold markets did not react to dollar’s rally. However, strong dollar may present a problem for gold bulls in the upcoming trading sessions.
From the technical point of view, gold continues its attempts to settle above the support level at $4160 – $4180. If gold manages to settle above the $4180 level, it will head towards the next resistance, which is located in the $4300 – $4320 range. A move above the $4320 level will push gold towards the $4400 level.
On the support side, a move below $4160 will open the way to the test of the next support, which is located in the $4000 – $4020 range.
Silver Remains Stuck Near Support At $61.00 – $62.00
Silver managed to gain some ground despite strong dollar. Gold/silver ratio remained stuck below the 69.00 level, which was neutral for silver.
If silver settles below the support at $61.00 – $62.00, it will head towards the next support level, which is located in the $56.00 – $57.00 range. RSI is in the moderate territory, so there is plenty of room to gain downside momentum in case the right catalysts emerge.
On the upside, a move above the $62.00 level will open the way to the test of the 50 MA at $63.97. If silver moves above the 50 MA, it will head towards the resistance level at $65.00 – $66.00.
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See all Gold forecastsPlatinum Tested The $1720 Level
Platinum made an attempt to settle back above the $1700 level as traders focused on falling Treasury yields. Palladium markets were down by -2.2%, which was bearish for platinum.
Interestingly, the strong rally in the oil markets did not put material pressure on platinum. Brent oil gained almost 5% amid worries about escalation in the Middle East.
In case platinum moves above the $1720 level, it will head towards the 50 MA at 1754. A move above the 50 MA will push platinum towards the resistance level at $1780 – $1800.
On the support side, platinum needs to settle below the $1700 level to have a chance to gain downside momentum in the near term. In this case, platinum will head towards the next support, which is located in the $1600 – $1620 range.
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