Gold (XAUUSD), Silver, Platinum Forecasts – Gold Pulls Back As Traders Take Profits After Rebound

Gold Is Losing Ground As Dollar Moves Higher

Gold pulls back as traders take some profits off the table after the rebound. U.S. dollar gained some ground against a broad basket of currencies, putting pressure on gold prices. Stronger dollar is bearish for gold and other dollar-denominated commodities as it makes them more expensive for buyers who have other currencies.

Treasury yields moved lower, but this move did not provide support to gold markets. The yield of 2-year Treasuries declined towards the 4.12% level, while the yield of 10-year Treasuries pulled back towards 4.48%.

Interestingly, the yield of 30-year Treasuries continues its attempts to test the psychologically important 5.00% level. Bond traders remain sceptical about the long-term rate outlook in the U.S.

From the technical point of view, gold failed to settle above the resistance level at $4180 – $4200 and pulled back towards the $4150 level. In case gold manages to settle below $4150, it will head towards the nearest support level, which is located in the $4020 – $4040 range.

On the upside, gold needs to climb above the $4200 level to have a chance to gain upside momentum in the near term. If gold manages to settle above the $4200 level, it will head towards the resistance level at $4360 – $4380.

Silver Pulls Back Amid Profit-Taking

Silver  is moving lower as gold/silver ratio climbed back above the 67.00 level. A move above 68.00 will push silver towards the 70.00 level, which will be bearish for silver.

In case silver declines below the $61.00 level, it will head towards the support level at $56.00 – $57.00. This support level has been tested many times and proved its strength. A successful test of this level will open the way to the test of the $52.00 level.

On the upside, silver needs to settle above $62.00 to gain upside momentum in the near term. In this case, silver will move towards the resistance at $65.00 – $66.00.

Platinum Retreats As Traders Wait For Positive Catalysts

Platinum is losing ground amid broad pullback in precious metals markets. Palladium prices are up by +0.1%, which is neutral for platinum.

If platinum stays above the resistance level at $1600 – $1620, it will move towards the next resistance, which is located in the $1680 – $1700 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

On the support side, a move below the $1600 level will push platinum towards the support at $1500 – $1520.

It should be noted that general trend remains bearish, and platinum will likely need strong catalysts to gain material upside momentum in the near term. From a big picture point of view, platinum needs to settle above the 50 MA at $1832 to attract speculative buyers. Strong dollar and hawkish Fed policy outlook are the key negative catalysts for platinum and other precious metals.

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