Gold (XAUUSD), Silver, Platinum Forecasts – Gold Pulls Back As Traders Take Profits Despite Falling Treasury Yields

Gold Retreats Amid Profit-Taking

Gold pulled back despite falling Treasury yields as traders rushed to take profits off the table after the strong rebound from multi-month lows.

Treasury yields moved lower as bond traders reacted to the U.S. Producer Prices report. The report indicated that PPI was unchanged in July, compared to analyst forecast of +0.2%. Core PPI increased by +0.2% month-over-month, compared to analyst consensus of +0.3%.

The reports showed that inflationary pressure was slowing down. As a result, bond traders rushed to buy Treasuries, pushing their yields lower. The yield of 2-year Treasuries declined towards the 4.15% level, while the yield of 10-year Treasuries settled below 4.65%.

Typically, falling Treasury yields provide support to gold that pays no interest. Today, traders preferred to use the encouraging Producer Prices report as an opportunity to take some money off the table.

U.S. dollar moved lower against a broad basket of currencies as traders focused on falling Treasury yields. Weaker dollar did not provide any support to gold markets in today’s trading session.

In case gold settles back below the $4350 level, it will move towards the $4300 level. If gold declines below $4300, it will head towards the support at $4180 – $4200.

On the upside, gold needs to settle back above the resistance at $4360 – $4380 to have a chance to gain upside momentum in the near term. In this case, gold will move towards the next resistance level at $4480 – $4500.

Silver Attempts To Settle Below The $65.00 Level

Silver moved lower as traders focused on dynamics of gold markets. Gold/silver ratio was mostly unchanged, which was neutral for silver markets.

From the technical point of view, silver made several attempts to settle above the resistance level at $65.00 – $66.00 but these attempts yielded no results. In case silver settles below the $64.00 level, it will head towards the support at $61.00 – $62.00 range.

If silver manages to settle above the $66.00 level, it will move towards the next resistance level, which is located in the $71.00 – $72.00 range.

Platinum Moves Lower As Demand For Precious Metals Declines

Platinum is losing ground amid broad pullback in precious metals markets. Palladium markets are down by -3.7%, which is bearish for platinum.

Interestingly, falling oil prices did not provide any support to platinum in today’s trading session. Oil prices pulled back by more than -1% as traders remained focused on the situation in the Middle East.

The nearest support level for platinum is located in the $1680 – $1700 range. A move below this level will push platinum towards the 50 MA at $1653. In case platinum declines below the 50 MA, it will head towards the next support at $1600 – $1620.

On the upside, platinum needs to settle above the strong resistance level at $1780 – $1800 to have a chance to gain upside momentum in the near term. In case platinum climbs above the $1800 level, it will head towards the $1870 level.

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