Gold (XAUUSD), Silver, Platinum Forecasts – Gold Pulled Back As Oil Tested Multi-Year Highs

Gold Is Losing Ground As Traders Focus On The Dynamics Of Oil Markets

Gold pulled back as traders reacted to the strong rally in the oil markets. Oil prices have almost touched the $120 level as traders reacted to the developments in the Middle East.

The Strait of Hormuz remains shut as Iran continues to strike oil-producing countries in the region. Meanwhile, U.S. and Israel continue to deliver strikes against Iran.

The son of Ayatollah Ali Khamenei, Mojtaba Khamenei, was chosen as Iran’s new supreme leader. This choice indicated that Iran does not plan to capitulate in the near term.

U.S. dollar moved higher amid rising demand for safe-haven assets. In recent trading sessions, demand for safe-haven assets did not provide support to gold markets.

It looks that there are too many leveraged players in gold, and some of them were forced to close their positions amid geopolitical tensions and turmoil in financial markets.

That said, gold prices managed to stabilize near the support level at $5100 – $5120. If gold manages to settle above the $5120 level and moves above $5200, it will head towards the resistance, which is located near recent highs at $5430 – $5450.

On the support side, gold needs to settle below $5050 to have a chance to gain downside momentum in the near term. In this scenario, gold will move towards the nearest support at $4880 – $4900.

Silver Is Mostly Flat As Gold/Silver Ratio Drops Towards The 60.00 Level

Silver managed to rebound from session lows as oil prices pulled back from session highs. WTI oil declined below the $95.00 level, while Brent oil pulled back below the $100 level.

Oil traders bet that G7 countries will release oil from reserves to put pressure on prices. Lower oil prices will likely serve as a bullish catalyst for silver, which is dependent on industrial demand.

The potential slowdown in global growth is the key negative catalyst for silver. If oil prices start to move lower, silver may get more support.

Gold/silver ratio pulled back towards the 60.00 level, providing additional support to silver. In case gold/silver ratio settles below 60.00, it will head towards the 50 MA at 57.37, which will be bullish for silver.

From the technical point of view, silver received support above the $79.00 level and rebounded towards the resistance at $86.00 – $87.00. If silver climbs above the $87.00 level, it will head towards the next resistance, which is located in the $95.00 – $96.00 range.

Platinum Rebounds From Session Lows Amid Rising Risk Appetite

Platinum rebounded as traders reacted to recent developments in the oil markets. It should be noted that U.S. equities have almost managed to get back into positive territory, which indicated that traders’ risk appetite was rising.

Palladium markets were up by roughly 2%, providing additional support to platinum.

Platinum made an attempt to settle below the support at $2040 – $2060 but lost momentum and rebounded above the $2100 level.

If platinum settles above $2150, it will head towards the resistance level at $2245 – $2265. A successful test of this level will provide platinum markets with an opportunity to gain additional momentum. RSI remains in the moderate territory, so there is plenty of room to gain upside momentum in case the right catalysts emerge.

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