Gold (XAUUSD), Silver, Platinum Forecasts – Gold Pulls Back As Traders Focus On Rising Treasury Yields

Gold Moves Lower As Treasury Yields Rise

Gold is losing some ground despite signs of de-escalation in the Middle East. President Trump said that Iran asked for negotiations. Trump agreed to continue talks but added that the ceasefire was over. Oil prices were down by roughly -1% as traders reacted to Trump’s comments.

Treasury yields moved higher as bond traders ignored falling oil prices and bet that Fed would raise rates to fight inflation. The yield of 2-year Treasuries climbed above the 4.20% level, while the yield of 10-year Treasuries settled above 4.55%. Rising Treasury yields put pressure on gold that pays no interest.

U.S. dollar lost some ground against a broad basket of currencies as forex traders reacted to geopolitical developments. However, weaker dollar did not provide material support to gold markets in today’s trading session.

From the technical point of view, gold is stuck between support at $4020 – $4040 and resistance at $4180 – $4200. In case gold manages to climb above the $4020 level, it will head towards the resistance at $4360 – $4380.

On the support side, a move below the $4020 level will push gold prices towards the $3950 level. In case gold settles below $3950, it will likely gain significant downside momentum.

Silver Failed To Settle Above The $60.00 Level

Silver made an attempt to settle above the $60.00 level but lost momentum and pulled back as traders focused on dynamics of gold markets. Gold/silver ratio was mostly unchanged in today’s trading session.

Silver needs to settle above the resistance level at $61.00 – $62.00 to gain upside momentum in the near term. In case silver climbs above $62.00, it will head towards the next resistance level, which is located in the $65.00 – $66.00 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, a successful test of the support level at $56.00 – $57.00 will push silver towards the $52.00 level. It should be noted that silver could quickly move towards $52.00 in case it manages to settle below $56.00 as speculative traders would likely rush out of their long positions.

Platinum Tested Resistance At $1600 – $1620

Platinum continues its attempts to settle above the resistance level at $1600 – $1620 as traders ignore the pullback in gold markets and focus on falling oil prices. Lower oil prices are bullish for platinum, which is dependent on industrial demand. Palladium markets are up by +1.8%, providing additional support to platinum.

A successful test of the resistance at $1600 – $1620 will push platinum towards the next resistance level at $1680 – $1700. In case platinum climbs above the $1700 level, it will move towards the 50 MA at $1806.

On the support side, a move below $1560 will open the way to the test of the support at $1500 – $1520. It should be noted that general trend remains bearish, and platinum will likely need material upside catalysts to gain sustainable upside momentum.

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