Gold (XAUUSD), Silver, Platinum Forecasts – Gold Pulls Back As Oil Prices Rise

Gold Failed To Settle Above $5200

Gold pulls back as traders focus on U.S. inflation data and react to rising oil prices.

U.S. inflation data  met analyst estimates. Inflation Rate remained unchanged at 2.4% in February, while Core Inflation Rate was unchanged at 2.5%. The American currency moved higher as traders reacted to the report, which was bearish for gold. Strong dollar is a negative catalyst for dollar-denominated commodities.

Treasury yields gained ground as traders bet that rising energy prices will force the Fed to be more hawkish to fight inflation. Rising Treasury yields are bearish for gold that pays no interest.

At this point, rising demand for safe-haven assets does not provide significant support to gold markets. In the short term, traders prefer the safety of the U.S. dollar.

However, gold does not attempt to gain downside momentum as central banks continue to buy gold for reserves. This trend will remain intact in the upcoming months as central banks continue to diversify away from fiat currencies amid geopolitical tensions.

Gold has recently made several attempts to settle above the $5200 level but these attempts yielded no results. The nearest support level for gold is located in the $5100 – $5120 range. A successful test of this level will push gold towards the next support at $4880 – $4900.

On the upside, a move above the $5200 level will open the way to the test of the resistance at $5430 – $5450.

Silver Declined Amid Falling Risk Appetite

Silver pulled back as gold/silver ratio climbed back above the 60 level. Gold/silver ratio failed to settle below the 50 MA at 57.39, which was a bearish development for silver markets.

Silver is moving lower as traders worry that high oil prices will put pressure on the global economy and demand for silver will decline.

Silver is extremely sensitive to fluctuations of investors’ appetite for risk, which indicates that there are many leveraged positions in silver markets.

From the technical point of view, silver made an attempt to settle above the resistance at $86.00 – $87.00 but lost momentum and pulled back towards the $85.00 level.

If silver manages to settle below $85.00, it will head towards the nearest support, which is located in the $78.00 – $79.00 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

On the upside, silver needs to settle above $87.00 to have a chance to gain momentum in the near term. In this case, silver will head towards the psychologically important $90.00 level. A move above $90.00 will push silver towards the resistance at $95.00 – $96.00.

Platinum Remains Stuck Below The Resistance At $2245 – $2265

Platinum is losing some ground amid broad pullback in precious metals markets. Palladium markets are down by 1.9%, which is bearish for platinum markets.

Traders are taking some profits off the table after the strong rebound from March lows.

The nearest resistance level for platinum is located in the $2245 – $2265 range. If platinum climbs above this level, it will move towards the next resistance at $2430 – $2450.

On the support side, a move below the $2150 level will push platinum towards the support level, which is located near March lows at $2040 – $2060.

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