Gold (XAUUSD), Silver, Platinum Forecasts – Gold Moves Below $5100 As Pullback Continues

Gold Pulls Back As Dollar Gains Ground

Gold is losing ground as traders focus on strong dollar and rising Treasury yields.

U.S. dollar gained ground against a broad basket of currencies as traders rushed to buy safe-haven assets amid rising geopolitical tensions.

U.S. and Israel continue their military operation against Iran. Meanwhile, Iran launches strikes that hit other countries in the Middle East. The Strait of Hormuz remains closed.

President Trump said that the operation progressed well, but traders wonder whether military action could end in the near term. At this point, it looks that the conflict could turn into a long-term problem despite U.S. military superiority. In this environment, demand for U.S. dollar increased, which was bearish for gold markets.

Treasury yields are rising as traders worry that rising energy prices will trigger an inflation wave. Therefore, the Fed will be forced to keep rates unchanged, which would be bearish for gold prices.

Currently, gold is trying to settle below the nearest support, which is located in the $5100 – $5120 range. A move below the $5100 level will open the way to the test of the next support at $4880 – $4900.

Silver Is Losing Ground As Treasury Yields Rise

Silver is losing ground as traders focus on the dynamics of the American currency and react to the pullback in gold markets.

From the technical point of view, silver has recently made several attempts to settle above the resistance at $86.00 – $87.00 but failed to develop sufficient upside momentum.

The nearest support level for silver is located in the $78.00 – $79.00 range. In case silver manages to settle below the $78.00 level, it will move towards the next support at $71.00 – $72.00. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the upside, silver needs to climb above the $87.00 level to have a chance to gain upside momentum in the near term. If silver settles back above $87.00, it will move towards recent highs in the $95.00 – $96.00 area.

Platinum Is Under Pressure As Demand For Precious Metals Falls

Platinum is moving lower amid broad pullback in precious metals markets. Palladium markets are down by 3%, which is bearish for platinum.

From a big picture point of view, traders remain worried that high oil prices will put material pressure on global economy.

For example, China, which was Iran’s key client in the oil space, could soon feel the pressure from rising oil prices. In case demand from China’s manufacturing declines, platinum prices will move lower.

The European economy will also find itself under strong pressure in case the conflict in the Middle East lasts for weeks. Therefore, traders will try to guess whether operation against Iran ends soon or lasts for weeks.

Platinum settled between the support level at $2040 – $2060 and the resistance level at $2245 – $2265. If platinum declines below the $2040 level, it will move towards the next support level at $1880 – $1900.

It should be noted that platinum received strong support near the $1900 level in early February. A move below the support at $1880 – $1900 may trigger a strong sell-off in platinum markets.

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