Gold Moves Lower As Treasury Yields Test New Highs
Gold is losing ground as traders focus on the situation in debt markets. The yield of 10-year Treasuries climbed towards the 5.15% level, while the yield of 30-year Treasuries settled near 5.45%. The yield of 30-year Treasuries has not tested such levels since 2004.
Bond traders bet that Bessent’s buybacks won’t provide sufficient support to markets. Meanwhile, oil prices are rising again, so Fed will likely be forced to raise rates at the meeting in October. FedWatch Tool indicates that there is a 68.6% probability that Fed will raise rates at the next meeting.
Rising bond yields put pressure on gold which pays no interest. At this point, the sell-off in bond markets did not trigger panic-buying in gold markets. Traders believe that yields will be higher but do not worry about sustainability of U.S. finances in the near term.
U.S. dollar gained ground against a broad basket of currencies as forex traders focused on rising Treasury yields. Stronger dollar served as an additional bearish catalyst for gold markets.
Gold moved below the support level at $4300 – $4320 and is trying to settle below the $4250 level. In case gold manages to settle below $4250, it will head towards the next support, which is located in the $4160 – $4180 range. A move below the $4160 level will push gold towards the psychologically important $4000 level.
On the upside, gold needs to settle back above the $4320 level to have a chance to gain upside momentum in the near term. In this case, gold will head towards the $4400 level.
Silver Retreats As Gold/Silver Ratio Climbs Above 67
Silver remains under pressure as gold/silver ratio climbed above the 67.00 level. Rising Treasury yields reduced investors’ appetite for risk, which was bullish for gold/silver ratio and bearish for silver markets.
Currently, silver is trying to settle below the 50 MA at $63.59. If silver declines below the 50 MA, it will head towards the support level at $61.00 – $62.00. A move below the $61.00 level will push silver towards the $57.00 level.
On the upside, a successful test of the resistance at $65.00 – $66.00 will open the way to the test of the $68.00 level.
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See all Gold forecastsPlatinum Tests New Lows
Platinum is losing ground as traders focus on the rally in oil markets. WTI oil climbed above the $95.00 level, while Brent oil settled above $107.00. Palladium markets are up by +0.1%, which is neutral for platinum.
Platinum is trying to settle below the 50 MA at $1743. If platinum manages to settle below the 50 MA, it will head towards the nearest support, which is located in the $1700 – $1720 range. A move below the $1700 level will open the way to the test of the next support level at $1600 – $1620.
On the upside, the nearest resistance level for platinum is located in the $1780 – $1800 range. In case platinum manages to settle above $1800, it will head towards the $1870 level.
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