Gold (XAUUSD), Silver, Platinum Forecasts – Gold Moves Higher Amid Falling Treasury Yields

Gold Gains Ground As Dollar Pulls Back

Gold is moving higher as traders focus on weaker dollar, falling Treasury yields, and lower oil prices.

U.S. dollar pulled back against a broad basket of currencies despite strong Non Farm Payrolls report. The report showed that U.S. economy added 115,000 jobs in April, exceeding the analyst forecast of 62,000. Weaker dollar is bullish for gold as it makes the metal cheaper for buyers who have other currencies.

Treasury yields pulled back after yesterday’s rebound. The yield of 2-year Treasuries declined below the 3.90% level, while the yield of 10-year Treasuries settled near 4.36%. Falling Treasury yields provided additional support to gold that pays no interest.

Oil prices moved lower as traders waited for Iran’s response to U.S. proposal to end the war in the Middle East. Falling oil prices are bullish for gold as they boost demand for risk assets. Gold has been trading as a risk asset in recent months as speculative traders flooded the market after the strong multi-month rally.

Gold settled above the previous resistrance at $4660 – $4680 and continues its attempts to settle above the $4700 level. If gold manages to settle above $4700, it will head towards the 50 MA at $4780. A move above the 50 MA will open the way to the test of the resistance level at $4860 – $4880.

Silver Rallies As Gold/Silver Ratio Tests The 58.50 Level

Silver markets gain ground as gold/silver ratio pulled back towards the 58.50 level. It should be noted that gold/silver ratio made several attempts to settle below the 58.00 level but failed to develop sufficient downside momentum. In case gold/silver ratio settles below 58.00, it will head towards the 56.00 level, which will be bullish for silver.

From the technical point of view, silver continues its attempts to settle above the resistance at $78.00 – $79.00. If gold manages to settle above this level, it will head towards the next resistance at $85.00 – $86.00. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

On the support side, a move below the 50 MA at $77.20 will push silver towards the support level at $71.00 – $72.00.

Platinum Rebounds As Traders Buy The Dip

Platinum gains ground amid rising demand for precious metals. Palladium markets are up by +0.25%, which is neutral for platinum.

Falling oil prices provide material support to platinum, which is dependent on industrial demand. In case Iran agrees to the U.S. proposal to end the war, platinum will likely get additional support.

Currently, platinum is trying to settle above the resistance level at $2040 – $2060. This resistance level has already been tested several times and proved its strength. In case platinum manages to settle above $2060, it will move towards the $2140 level.

On the support side, a move below the 50 MA at $2021 will open the way to the test of the psychologically important $2000 level. If platinum declines below $2000, it will head towards the next support at $1880 – $1900.

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