Gold Pulls Back As Treasury Yields Rise
Gold is losing ground despite the pullback in the oil markets. Oil prices are moving lower as traders focus on recent news about U.S. – Iran negotiations. Both sides of the conflict review latest proposals from mediators despite “limited” strikes against Iran.
Treasury yields are moving higher as bond traders wait for U.S. midterm elections. The yield of 2-year Treasuries climbed above the 4.61% level, while the yield of 10-year Treasuries settled above 4.95%. Rising Treasury yields put additional pressure on gold markets in today’s trading session.
U.S. dollar was mostly flat against a broad basket of currencies as forex traders were not ready for big moves ahead of midterm elections.
FedWatch Tool indicates that there is a 76.9% probability that Fed will raise the federal funds rate at the next meeting in December. The market believes that Fed will also raise rates in March 2027. Hawkish outlook for Fed policy serves as a negative catalyst for gold prices.
The nearest support level for gold is located in the $3890 – $3910 range. In case gold settles below the $3890 level, it will head towards the next support, which is located in the $3780 – $3800 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
On the upside, gold needs to settle above the resistance at $4000 – $4020 to have a chance to gain upside momentum in the near term. In this case, gold will head towards the $4100 level.
Silver Tests The $50 Level
Silver pulled back as gold/silver ratio climbed above the 79.00 level. Rising gold/silver ratio continues to put pressure on silver. In case gold/silver ratio stays above 79.00, it will head towards the psychologically important 80.00 level, which will be bearish for silver.
Currently, silver is trying to settle below the $50.00 level. In case this attempt is successful, silver will move towards the nearest support, which is located in the $47.00 – $48.00 range.
On the upside, a successful test of the resistance at $51.00 – $52.00 will open the way to the test of the next resistance level at $56.00 – $57.00.
Gold Price Forecast
Every new Gold analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all Gold forecastsPlatinum Retreats As Pullback Continues
Platinum moved lower amid broad pullback in precious metals markets. Palladium prices were down by -3%, putting additional pressure on platinum. I’d note that the downside trend in palladium markets is extremely strong. The price of metal has declined for 11 trading sessions in a row.
Platinum has recently made an attempt to settle above the resistance level at $1440 – $1460 but lost momentum and pulled back. In case platinum manages to settle below the $1400 level, it will head towards the support, which is located in the $1350 – $1370 range.
On the upside, a move above the $1460 level will open the way to the test of the resistance at $1520 – $1540.
If you’d like to know more about how to trade gold and silver, please visit our educational area.