Gold (XAUUSD), Silver, Platinum Forecasts – Gold Moves Lower As U.S. Dollar Tests New Highs

Gold Pulls Back As U.S. Dollar Moves Higher

Gold is losing ground as traders focus on strong dollar. U.S. dollar gained ground against a broad basket of currencies as traders reacted to the Retail Sales report, which indicated that Retail Sales increased by +0.5% month-over-month in April.

Strong dollar is bearish for gold and other dollar-denominated commodities as it makes them more expensive for buyers who have other currencies.

The recent India’s decision to raise tariffs on gold and silver imports continues to serve as a bearish catalyst for gold markets. These tarrifs may put pressure on gold consumption in India as gold has already become more expensive due to weak rupee.

Treasury yields pulled back from recent highs, but this move did not provide support to gold markets in today’s trading session. Oil prices were swinging between gains and losses as traders focused on Trump – Xi meeting in Beijing.

Today, the World Gold Council released a report which indicated that China continued to buy gold for reserves. According to the report, the People’s Bank of China announced that it increased its gold position by 8t, the highest since December 2024. China’s central bank has been buying gold for 18 months in a row.

China is using the pullback in gold prices to diversify its reserves. Meanwhile, other central banks may be forced to sell gold to provide support to local currencies, which have found themselves under pressure amid high oil prices.

The technical picture remains unchanged as gold is stuck near the support level at $4660 – $4680. This support level has already been tested many times and proved its strength. In case gold manages to settle below the $4560 level, it will head towards the next support, which is located in the $4530 – $4550 range.

On the upside, a move above the 50 MA at 4740 will open the way to the test of the resistance level at $4860 – $4880.

Silver Retreats Amid Profit-Taking

Silver is losing ground as traders rush to take some profits off the table after the strong rally. Gold/silver ratio climbed back above the 55.00 level, which was bearish for silver. In case gold/silver ratio stays above 55.00, it will head towards the 56.50 level, putting additional pressure on silver markets.

Currently, silver is trying to settle below the support level at $85.00 – $86.00. In case this attempt is successful, silver will head towards the next support level, which is located in the $78.00 – $79.00 range.

On the upside, silver needs to climb above the $90.00 level to continue the rally. A move above $90.00 will push silver towards the resistance at $95.00 – $96.00.

Platinum Tests Support At $2040 – $2060

Platinum moved lower amid broad pullback in precious metals markets. Palladium prices were down by -3.5%, which was bearish for platinum.

If platinum declines below the support at $2040 – $2060, it will get to the test of the 50 MA at $2013. A move below the 50 MA will open the way to the test of the next support level at $1880 – $1900.

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