Gold (XAUUSD), Silver, Platinum Forecasts – Gold Moves Lower Amid Profit-Taking

Gold Moves Away From Session Highs As Oil Markets Rally

Gold pulled back from session highs as traders took some profits off the table after the strong rally.

Oil prices rallied 4% as Houthis attacked Saudi-backed forces in Yemen. Houthis’ actions raised demand for safe-haven assets and triggered a wave of profit-taking in precious metals markets.

Treasury yields moved higher as bond traders focused on rising oil prices. The yield of 2-year Treasuries moved towards the 4.24% level, while the yield of 10-year Treasuries settled near 4.67%. Rising Treasury yields served as a bearish catalyst for gold that pays no interest.

U.S. dollar gained ground against a broad basket of currencies, supported by rising Treasury yields. Stronger dollar put additional pressure on gold markets in today’s trading session.

It should be noted that gold’s pullback was not significant, which indicates that demand for gold remained strong.

Gold made an attempt to settle above the $4300 level but lost momentum and pulled back towards the $4250 level. if gold settles below $4250, it will head towards the nearest support at $4180 – $4200. A move below the $4180 level will open the way to the test of the 50 MA at $4156.

On the upside, a move above the $4300 level will push gold towards the resistance level, which is located in the $4360 – $4380 range.

Silver Retreats Amid Profit-Taking

Silver pulled back as gold/silver ratio rebounded towards the 69.00 level. Gold/silver ratio has recently made an attempt to settle below the 68.00 level, but this attempt yielded no results. In case gold/silver ratio climbs above 70.00, it will head towards the 71.00 level, which will be bearish for silver.

If silver pulls back below the psychologically important $60.00 level, it will head towards the strong support level at $56.00 – $57.00. A move below the $56.00 level will signal that silver is ready to gain additional downside momentum.

On the upside, silver needs to settle above the resistance level at $61.00 – $62.00 to gain upside momentum in the near term. If silver settles above $62.00, it will head towards the next resistance at $65.00 – $66.00.

Platinum Pulled Back Below The $1750 Level

Platinum made an attempt to settle above the resistance at $1780 – $1800 but lost momentum and pulled back below the $1750 level as traders rushed to take profits after the recent rally. Palladium markets were up by +0.3%, which was neutral for platinum.

The strong rally in the oil markets put some pressure on platinum, which is dependent on industrial demand. Higher oil prices lead to slower economic growth and hurt demand for platinum.

The nearest support level for platinum is located in the $1680 – $1700 range. A move below the $1680 level will push platinum towards the $1600 level.

On the upside, a successful test of the resistance level at $1780 – $1800 will push platinum towards the next resistance level at $1870 – $1890. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

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