Gold Moves Lower As Traders Wait For Fed Decision
Gold is losing ground as traders prepare for Fed decision and focus on rising Treasury yields. The yield of 2-year Treasuries climbed above the 4.76% level, while the yield of 10-year Treasuries settled near 5.00%.
Analysts and market participants expect that Fed will keep the federal funds rate unchanged, so traders will mostly focus on comments from Fed Chair Warsh. In case Warsh is hawkish, gold may find itself under more pressure.
Gold traders also focus on the situation in the oil markets. Oil prices are rising as traders worry that U.S. and Israel will restart the military operation against Iran after U.S. midterm elections. High oil prices will force central banks to be more hawkish, which will be bearish for gold.
U.S. dollar is losing ground against a broad basket of currencies as forex traders take some profits off the table ahead of Fed decision. Weaker dollar did not provide support to gold markets in today’s trading session.
The nearest support level for gold is located in the $4000 – $4020 range. In case gold declines below the $4000 level, it will head towards the next support, which is located in the $3890 – $3910 range.
On the upside, a move above $4050 will push gold towards the $4100 level. If gold settles above $4100, it will head towards the nearest resistance level, which is located in the $4160 – $4180 range.
Silver Retreats As Gold/Silver Ratio Climbs Above 75
Silver pulls back as gold/silver ratio climbed above the psychologically important 75.00 level. In case gold/silver ratio stays above 75.00, it will head towards the 78.00 level, which will be bearish for silver.
From a big picture point of view, gold/silver ratio continues to rebound from yearly lows near 43.50 and has already climbed above 75. In case gold/silver ratio settles back in the previous 75 – 90 range, silver will find itself under more pressure.
Currently, silver is trying to settle below the 53.50 level. In case this attempt is successful, silver will head towards the nearest support at $51.00 – $52.00. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
On the upside, a successful test of the resistance at $56.00 – $57.00 will push gold/silver ratio towards the psychologically important $60.00 level.
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See all Gold forecastsPlatinum Tests Support At $1520 – $1540
Platinum remains stuck near support level at $1520 – $1540 as traders wait for Fed decision. Palladium markets are down by -2.0%, which is bearish for platinum.
In case platinum manages to settle below the $1520 level, it will head towards the support level, which is located in the $1440 – $1460 range.
On the upside, platinum needs to settle back above the $1550 level to have a chance to gain upside momentum in the near term. In this case, platinum will move towards the resistance at $1600 – $1620.
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