Gold (XAUUSD), Silver, Platinum Forecasts – Gold Moves Lower As Treasury Yields Rise

Gold Pulls Back Amid Rising Tensions In The Middle East

Gold pulled back as traders reacted to the strong rally in the oil markets. Oil prices rallied as traders focused on attacks in the Strait of Hormuz. According to Iran’s demands, all vessels should go through approved routes. It looks that vessels that choose other ways are attacked by Iran.

Rising oil prices reduced demand for risk assets, which was bearish for gold that continues to trade as a risk asset.

Treasury yields gained ground as higher oil prices raise inflationary risks. The yield of 2-year Treasuries climbed above the 4.15% level, while the yield of 10-year Treasuries settled above 4.50%. Rising Treasury yields are bearish for gold that pays no interest.

U.S. dollar gained ground against a broad basket of currencies as forex traders focused on rising yields. Stronger dollar put additional pressure on gold markets.

From a big picture point of view, gold traders continue to take profits after the rebound from multi-month lows. It should be noted that gold has pulled back by more than 25% from historic highs, so current levels may attract central banks that want to replenish their reserves.

In case gold manages to settle below the $4150 level, it will head towards the nearest support, which is located in the $4020 – $4040 range. A move below the $4020 level will push gold towards recent lows near the $3950 level.

On the upside, a successful test of the resistance at $4180 – $4200 will open the way to the test of the next resistance at $4360 – $4380.

Silver Tests The $61.00 Level

Silver is losing ground as gold/silver ratio climbed towards the 68.00 level. A move above the 68.00 level will push gold/silver ratio towards the 70.00 level, which will be bearish for silver.

If silver pulls back below the $60.00 level, it will head towards the support level at $56.00 – $57.00.  RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the upside, silver needs to settle back above the $62.00 level to have a chance to gain upside momentum in the near term. A move above $62.00 will push silver towards the resistance level at $65.00 – $66.00.

Platinum Gains Ground As Rebound Continues

Platinum gained ground despite the strong rally in the oil markets and rising Treasury yields. Palladium markets were up by +0.8%, providing additional support to platinum markets.

Platinum continues its attempts to settle above the resistance level at $1600 – $1620. If platinum manages to settle above the $1620 level, it will move towards the next resistance, which is located in the $1680 – $1700 range. A move above the $1700 level will open the way to the test of the $1800 level.

On the support side, platinum must pull back below $1600 to gain downside momentum in the near term. In this case, platinum will head towards the support level at $1500 – $1520.

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