Gold (XAUUSD), Silver, Platinum Forecasts – Gold Is Stuck Below $4800 As Traders Wait For Middle East Negotiations

Gold Is Mostly Flat As Traders Are Cautious Ahead Of U.S. – Iran Talks

Gold is swinging between gains and losses as traders react to U.S. inflation data and wait for negotiations between U.S. and Iran.

Inflation Rate increased from 2.4% in February to 3.3% in March, in line with analyst estimates. Core Inflation Rate grew from 2.5% to 2.6%, compared to analyst consensus of 2.7%.

U.S. dollar pulled back against a broad basket of currencies as traders reacted to CPI report. However, this move did not provide material support to gold markets.

Treasury yields moved higher, putting some pressure on gold and other precious metals. The yield of 2-year Treasuries settled back above the 3.80% level, while the yield of 10-year Treasuries moved above the 4.30% level. Rising yields are bearish for gold and other precious metals that pay no interest.

Iran has recently said that Israel must agree to a ceasefire in Lebanon before peace talks can proceed. In addition, Iran wants to unblock its frozen assets. Iran insists that these measures had been previously agreed with the U.S.

Meanwhile, the Strait of Hormuz remains de-facto blocked. U.S. President Trump has recently posted that Iran had “no cards, other than a short term extortion of the World by using Interenational Waterways.”

Oil prices are mostly flat as traders prepare for negotiations. Markets ignore Iran’s demands and comments from U.S. officials, betting that negotiations will take place.

From the technical point of view, gold remains stuck below the $4800 level. If gold settles above $4800, it will move towards the nearest resistance level, which is located in the $4860 – $4880 range. A move above the $4880 level will push gold towards the next resistance at $4980 – $5000.

On the support side, a move below the $4700 level will open the way to the test of the nearest support at $4660 – $4680. If gold declines below the $4660 level, it will head towards recent lows near the $4550 level.

Silver Moves Higher As Gold/Silver Ratio Pulls Back

Silver gained ground as gold/silver ratio pulled back towards the 62.50 level. Gold/silver ratio needs to settle below the 61.50 level to gain additional upside momentum in the near term, which will be bullish for silver markets.

If silver stays above the $76 level, it will head towards the nearest resistance level at $78.00 – $78.50. In case silver manages to settle above $78.50, it will head towards the next resistance, which is located in the $84.00 – $85.00 range. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

Platinum Retreats Amid Profit-Taking

Platinum pulled back as traders have started to take profits after the strong rebound from March lows. Palladium markets were down by 1.6%, which was bearish for platinum.

The technical picture remains unchanged as platinum needs to settle above the resistance level at $2040 – $2060 to gain additional upside momentum in the near term. A move above $2060 will push platinum towards the next resistance at $2210 – $2230.

On the support side, a move below the psychologically important $2000 level will open the way to the test of the nearest support, which is located in the $1880 – $1900 range.

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