Gold (XAUUSD), Silver, Platinum Forecasts – Gold Moves Higher As Oil Prices Test New Lows

Gold Moves Higher As Treasury Yields Fall

Gold gains ground as traders focus on the strong sell-off in the oil markets. Oil prices are down by as much as 6% as traders prepare for the signing of the U.S. – Iran deal.

U.S. and Iran are expected to sign an interim peace deal that would reopen the Strait of Hormuz and lift the naval blockade of Iranian ports. Oil traders bet that oil flows would increase rapidly when U.S. and Iran sign the deal. At this point, the market is not worried about the stability of the deal, although U.S. and Iran will continue negotiations regarding sanctions and Iran’s nuclear program.

Treasury yields pulled back as lower oil prices will provide Fed with an opportunity to be less hawkish. The yield of 2-year Treasuries declined below the 4.05% level, while the yield of 10-year Treasuries moved towards 4.43%. Lower Treasury yields provided support to gold that pays no interest.

U.S. dollar moved lower against a broad basket of currencies as traders focused on falling Treasury yields. Weaker dollar is bullish for gold and other dollar-denominated commodities as it makes them less expensive for buyers who have other currencies.

Gold needs to settle above the resistance at $4370 – $4390 to gain additional upside momentum in the near term. In case gold climbs above the $4390 level, it will head towards the next resistance at $4580 – $4600. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, a move below $4300 will push gold towards the support at $4180 – $4200.

Silver Remains Stuck Below The Resistance At $71.00 – $72.00

Silver gained some ground as traders focused on falling oil markets and reacted to the pullback in Treasury yields. Gold/silver ratio rebounded towards the 62.00 level, which was bullish for silver.

A successful test of the resistance at $71.00 – $72.00 will push silver towards the 50 MA at $75.42. In case silver manages to settle above the 50 MA, it will head towards the next resistance level at $78.00 – $79.00.

If silver pulls back below the $68.00 level, it will head towards the nearest support, which is located in the $65.00 – $66.00 range.

Platinum Tests New Highs As Rebound Continues

Platinum tested new highs as traders reacted to the sell-off in the oil markets. Platinum is dependent on industrial demand, so falling oil prices provide significant support to the metal. Palladium markets were up by +1.7%, which was bullish for platinum.

Currently, platinum is trying to settle above the resistance level at $1780 – $1800. In case this attempt is successful, platinum will head towards the next resistance level, which is located in the $1880 – $1900 range. If platinum manages to settle above the $1900 level, it will get to the test of the 50 MA at $1950.

On the support side, platinum needs to settle below the $1740 level to have a chance to gain downside momentum in the near term. In this case, platinum will head towards the support at $1680 – $1700.

If you’d like to know more about how to trade gold and silver, please visit our educational area.