Gold (XAUUSD), Silver, Platinum Forecasts – Gold Moves Lower As Traders Bet On Hawkish Fed

Gold Pulled Back Below $4400

Gold is losing ground as traders focus on rising Treasury yields and react to the new round of U.S. – Canada trade war.

Treasury yields moved higher as bond traders worried about a potential rate hike at the next Fed meeting in September. FedWatch Tool indicates that the probability of a rate hike exceeds 60%. Higher interest rates are bearish for gold that pays no interest.

Interestingly, rising Treasury yields did not provide material support to the U.S. dollar, which was flat against a broad basket of currencies.

Canada introduced retaliatory tariffs against the U.S. Canada’s Prime Minister Mark Carney said that he did not want to escalate the trade war but tariffs were necessary to protect Canadian businesses.

It remains to be seen whether trade war fears will have a material impact on gold markets in the near term. In my opinion, gold bulls are mostly worried about hawkish Fed.

From the technical point of view, gold has recently made an attempt to settle above the $4400 level but lost momentum and pulled back. In case gold declines below the $4365 level, it will head towards the nearest support level, which is located in the $4300 – $4320 range. A successful test of this level will push gold towards the 50 MA at $4254.

On the upside, the nearest resistance level for gold is located in the $4480 – $4500 range. If gold climbs above the $4500 level, it will head towards the next resistance at $4630 – $4650.

Silver Is Mostly Flat As Gold/Silver Ratio Tests The 66.00 Level

Silver remains stuck near the support level at $65.00 – $66.00 as gold/silver ratio pulled back towards the 66.00 level. If gold/silver ratio settles below 66.00, it will head towards August lows near the 65.00 level, which will be bullish for silver.

If silver climbs above the $67.50 level, it will head towards the resistance at $71.00 – $72.00. 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, silver needs to settle below the $65.00 level to have a chance to gain downside momentum in the near term. In this case, silver will head towards the next support at $61.00 – $62.00.

I’d note that this move may be fast as silver has consolidated near the support at $65.00 – $66.00 for several trading sessions and bulls had enough time to open long positions.

Platinum Attempts To Settle Above $1850

Platinum gains ground as traders do not worry about high oil prices and ignore the strong pullback in palladium markets. Palladium prices are down by -2.6% in today’s trading session.

If platinum climbs above the $1850 level, it will head towards the resistance level at $1870 – $1890. A move above the $1890 level will open the way to the test of the next resistance at $1950 – $1970. In case platinum manages to settle above the $1970 level, it will move towards the psychologically important $2000 level.

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