Gold (XAUUSD), Silver, Platinum Forecasts – Gold Pulls Back As 10-Year Treasury Yield Climbs Above 5.00%

Gold Remains Under Pressure As Treasury Yields Rise

Gold is losing some ground as traders react to the rally in the oil markets and prepare for tomorrow’s Fed decision.

WTI oil climbed above the $106.00 level as traders focused on supply disruptions in the Middle East. Saudi Arabia’s East-West Pipeline, which was used to bypass the Strait of Hormuz, would be out of work for several weeks. The situation remains dynamic as Houthis continue to attack targets in Saudi Arabia.

Traders expect that rising oil prices will force the Fed to start the new rate hike cycle. According to FedWatch Tool, the probability of a rate hike increased to 92.5%.

The yield of 10-year Treasuries climbed above the 5.01% level as bond traders waited for Fed decision. Rising yields put some pressure on gold, but traders were not ready for big moves ahead of the key event of the week.

U.S. dollar moved higher against a broad basket of currencies as forex traders bet on hawkish Fed. Stronger dollar served as a negative catalyst for gold in today’s trading session.

From the technical point of view, gold continued its attempts to settle below the 50 MA at $4275. If gold manages to settle below the 50 MA, it will head towards the next support, which is located in the $4160 – $4180 range. On the upside, a move above the $4320 level will open the way to the test of the $4400 level.

Silver Attempts To Rebound Ahead Of Tomorrow’s Fed Decision

Silver managed to gain some ground as gold/silver ratio declined below the 68.00 level. It remains to be seen whether silver traders are ready to push silver above the $64.00 level ahead of Fed decision.

In case silver moves above $64.00, it will head towards the nearest resistance level at $65.00 – $66.00. A successful test of this level will open the way to the test of recent highs near the $68.00 level.

On the support side, a move below the 50 MA at $62.63 will push silver towards the support level at $61.00 – $62.00. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge.

Platinum Gains Ground As Traders Buy The Dip

Platinum is moving higher as some traders are ready to buy the pullback despite rising oil prices and worries about hawkish Fed. Brent oil settled above the $109.00 level amid escalation in the Middle East. Interestingly, palladium markets have also moved higher as traders ignored high oil prices and stronger dollar.

The nearest resistance level for platinum is located in the $1780 – $1800 range. In case platinum manages to settle above the $1800 level, it will head towards the next resistance level at $1870 – $1890. If platinum climbs above $1890, it will move towards the $1950 level.

On the support side, a move below the $1750 level will push platinum towards the support level at $1700 – $1720.

If you’d like to know more about how to trade gold and silver, please visit our educational area.