Gold (XAUUSD), Silver, Platinum Forecasts – Gold Pulls Back As Traders Worry About Hawkish Fed

Gold Remains Stuck Below The $4550 Level

Gold is losing some ground as traders focus on rising Treasury yields and wait for news from the Middle East.

The yield of 2-year Treasuries climbed above the 4.13% level, while the yield of 10-year Treasuries settled near 4.57%. Bond traders expect that Fed will be forced to raise rates to fight inflation. Higher interest rates are bearish for gold that pays no interest.

U.S. dollar gained some ground against a broad basket of currencies, supported by rising Treasury yields. Stronger dollar is bearish for gold and other dollar-denominated commodities as it makes them more expensive for buyers who have other currencies.

Oil markets pulled back as traders focused on U.S. – Iran negotiations. Interestingly, this pullback did not provide support to precious metals. There are too many conflicting reports about the current state of U.S. – Iran talks, and traders are cautious ahead of the weekend.

In case U.S. and Iran reach a deal, oil markets will likely suffer a sell-off. This scenario will be bullish for gold as Treasury yields will move lower. However, anything may happen over the weekend, and traders are not ready to boost their long positions in gold markets.

Gold remains stuck near the resistance level at $4530 – $4550. In case gold manages to settle above the $4550 level, it will head towards the next resistance level, which is located in the $4660 – $4680 range.

On the support side, a move below recent lows near the $4550 level will push gold towards the support at $4350 – $4370.

Silver Moves Lower As Traders Take Profits After Recent Rebound

Silver is losing ground as gold/silver ratio climbed towards the 59.50 level. Gold/silver ratio moved higher as traders decided to take some profits off the table after the rebound from weekly lows. In addition, traders decided to reduce their risks ahead of the weekend.

In case silver declines below the $75.00 level, it will head towards the nearest support, which is located in the $71.00 – $72.00 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the upside, silver needs to settle above the 50 MA at $75.98 to have a chance to gain upside momentum in the near term. If silver settles above the 50 MA, it will move towards the next resistance at $78.00 – $79.00. A successful test of the resistance at $78.00 – $79.00 will push silver towards the next resistance level at $85.00 – $86.00.

Platinum Tests Support At $1880 – $1900

Platinum prices declined amid broad pullback in precious metals markets, which was triggered by worries about hawkish Fed. Palladium markets were down by -2.5%, putting additional pressure on platinum.

Currently, platinum is trying to settle below the support level at $1880 – $1900. In case this attempt is successful, platinum will head towards the next support level, which is located in the $1780 – $1800 range.

On the upside, a move above the $1950 level will push platinum towards the 50 MA at $1988. If platinum climbs above the 50 MA, it will head towards the resistance at $2040 – $2060.

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