Gold (XAUUSD), Silver, Platinum Forecasts – Gold Moves Higher As Oil Prices Drop

Gold Rebounds Towards The $4100 Level

Gold gains ground as traders focus on falling Treasury yields and react to U.S. dollar’s pullback.

Treasury yields moved lower as bond traders focused on the strong pullback in the oil markets. Oil prices declined by -5% amid signs of de-escalation in the Middle East. Qatar said that a draft deal had been prepared, although U.S. and Iran have not reached an offical agreement yet.

The yield of 2-year Treasuries declined towards the 4.20% level, while the yield of 10-year Treasuries pulled back below 4.63%. Falling yields are bullish for gold that pays no interest.

U.S. dollar moved lower against a broad basket of currencies as traders focused on the weaker-than-expected JOLTs Job Openings report. The report showed that JOLTs Job Openings decreased from 7.537 million in May to 7.359 million in June, compared to analyst forecast of 7.4 million. Weaker dollar is bullish for dollar-denominated commodities, including gold.

From the technical point of view, gold continues consolidation above the support level at $4020 – $4040. In case gold manages to settle above the $4100 level, it will head towards the nearest resistance level at $4180 – $4200. A move above the $4200 level will push gold towards the $4350 level.

On the support side, a successful test of the support level at $4020 – $4040 will open the way to the test of the next support at $3930 – $3950.

Silver Tests The $60.00 Level As Treasury Yields Pull Back

Silver rallied as gold/silver ratio pulled back below the 68.50 level. If gold/silver ratio settles below the 68.50 level, it will move towards the 66.50 level, which will be bullish for silver markets.

Silver climbed above the $59.00 level and moved towards the psychologically important $60.00 level. If silver settles above $60.00, it will head towards the resistance at $61.00 – $62.00.

A move above the $62.00 level will push silver towards the 50 MA at $62.91. In case silver manages to settle above the 50 MA, it will head towards the resistance level at $65.00 – $66.00.

On the support side, silver needs to settle below the strong support level at $56.00 – $57.00 to have a chance to gain downside momentum in the near term.

Platinum Rallies Above The $1700 Level

Platinum soared as traders focused on the strong pullback in the oil markets. From a big picture point of view, traders prepare for the potential deal between U.S. and Iran. Palladium markets rallied by +7.3%, providing additional support to platinum.

Platinum climbed above the resistance level at $1680 – $1700 and is trying to settle above the $1750 level. In case this attempt is successful, platinum will head towards the next resistance at $1780 – $1800. RSI remains in the moderate territory, so there is plenty of room to gaion additional upside momentum in case the right catalysts emerge.

On the support side, a move below the $1680 level will open the way to the test of the support, which is located in the $1600 – $1620 level.

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