Gold (XAUUSD), Silver, Platinum Forecasts – Gold Pulls Back As Traders Focus On Middle East Tensions

Gold Tested The $4600 Level

Gold pulls back as traders focus on developments in the Middle East and react to rising Treasury yields.

Iran has recently rejected U.S. proposals for a ceasefire. The country wants to keep official control of the Strait of Hormuz. In addition, Iran demands financial support to rebuild the country and wants U.S. to lift sanctions. From a big picture point of view, Iran will likely decline any ceasefire offer and focus on a peace deal.

President Trump has previously threatened to intensify strikes against Iran in case the country did not agree to a ceasefire proposal. He said that it was highly unlikely that he would move the deadline again.

Traders are cautious amid signs of an additional escalation in the Middle East. In recent months, traders worried about a potential ground operation in Iran. It remains to be seen whether new threats against Iran will serve as a significant catalyst for precious metals markets.

Treasury yields moved higher, putting some pressure on gold and other precious metals. Rising Treasury yields are bearish for gold that pays no interest. The yield of 2-year Treasuries climbed above the 3.85% level, while the yield of 10-year Treasuries moved towards 4.33%.

Interestingly, U.S. dollar lost some ground against a broad basket of currencies, but this move did not provide support to gold markets.

Gold settled near the resistance level at $4660 – $4680. If gold settles above the $4680 level, it will move towards the next resistance, which is located in the $4860 – $4880 level.

On the support side, a move below recent lows near the $4550 level will open the way to the test of the next support at $4400 – $4420.

Silver Tests Support At $71.00 – $72.00

Silver moved lower as gold/silver ratio settled above the 64.00 level. Gold/silver ratio has recently stabilized in a tight range, but it remains to be seen whether it has found a new balance.

If gold/silver ratio climbs above the 65.00 level, it will head towards the 68.00 level, which will be bearish for silver.

Silver continues its attempts to settle back below the support at $71.00 – $72.00. If silver manages to settle below the $71.00 level, it will gain additional downside momentum and head towards the next support level, which is located in the $65.00 – $66.00 range. A move below the $65.00 level will open the way to the test of the $61.00 level.

Platinum Moves Lower As Demand For Precious Metals Declines

Platinum is losing some ground amid broad pullback in precious metals markets. Palladium markets are down by 1.7%, which is bearish for platinum.

High oil prices did not put pressure on platinum in recent trading sessions. However, market dynamics may change quickly in case oil prices test new highs amid rising tensions in the Middle East.

From the technical point of view, platinum settled above the support at $1880 – $1900 and continues its attempts to settle above the $1950 level. In case platinum settles above $1950, it will move towards the resistance level at $2040 – $2060. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

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