Gold (XAUUSD), Silver, Platinum Forecasts – Gold Moves Higher As Traders Ignore Rising Oil Prices

Gold Tests Resistance At $4360 – $4380

Gold continues to move higher despite the strong rally in the oil markets and rising Treasury yields.

Oil prices are up by almost 6% as traders focus on recent developments in the Middle East. Hormuz negotiations yielded no results. Iran demands payments for damages suffered during the conflict. In turn, President Trump demanded compensation for “all of the people that they have killed”.

Treasury yields moved higher as bond traders focused on rising oil prices. The yield of 2-year Treasuries climbed above the 4.24% level, while the yield of 10-year Treasuries settled above 4.70%.

Rising Treasury yields did not put pressure on gold markets as traders remained focused on the recent Non Farm Payrolls report, which indicated that U.S. economy lost 23,000 jobs in July. The report had a material impact on Fed policy outlook.

FedWatch Tool indicates that there is a 50.3% chance that Fed will keep rates unchanged at the next meeting in September. It should be noted that the probability of a rate hike has started to rise again due to the rally in the oil markets, but it did not have a material impact on gold price dynamics.

U.S. dollar gained ground against a broad basket of currencies, supported by rising Treasury yields. Stronger dollar is bearish for gold and other dollar-denominated commodities but traders have mostly ignored the dynamics of the American currency in today’s trading session.

Gold continues its attempts to settle above the resistance level at $4360 – $4380. In case gold manages to settle above the $4380 level, it will head towards the next resistance, which is located in the $4480 – $4500 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.

Silver Gains Ground As Rally Continues

Silver rallied as gold/silver ratio pulled back towards the 67.00 level. In case gold/silver ratio stays below the 50 MA at 67.23, it will move towards the 66.00 level, which will be bullish for silver.

Currently, silver is trying to settle above the resistance level at $65.00 – $66.00. In case this attempt is successful, silver will gain additional upside momentum and move towards the next resistance level at $71.00 – $72.00.

On the support side, a move below the $63.00 level will push silver towards the nearest support at $61.00 – $62.00.

Platinum Pulls Back As Oil Markets Rally

Platinum stays range-bound as traders are worried that high oil prices will hurt demand for the metal. Palladium markets are flat in today’s trading session, which is neutral for platinum.

From the technical point of view, platinum settled between the support at $1680 – $1700 and resistance at $1780 – $1800. A successful test of the $1800 level will push platinum towards the next resistance level, which is located in the $1870 – $1890 range. If platinum climbs above $1890, it will head towards the $1950 level.

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