Gold (XAUUSD), Silver, Platinum Forecasts – Gold Pulls Back As Treasury Yields Test New Highs

Gold Retreats Amid Rising Treasury Yields

Gold pulls back as traders focus on rising Treasury yields and hawkish Fed policy outlook.

The yield of 2-year Treasuries climbed above the 4.28% level, while the yield of 10-year Treasuries settled near 4.74%. It should be noted that the yield of 10-year Treasuries tested yearly highs.

Meanwhile, the yield of 30-year Treasuries climbed above the 5.25% level. Geopolitical tensions and massive investments in AI will lead to higher inflation, which is bearish for bonds. In addition, bond traders are worried about long-term sustainability of U.S. finances. The yield of 30-year Treasuries has reached levels that were last seen back in 2007.

Recent data shows that higher yields put pressure on investment demand for gold. Meanwhile, central banks have mostly continued to buy gold, using the strong pullback from historic highs as an opportunity to boost their gold reserves.

FedWatch Tool indicates that there is a 64.8% probability that Fed will raise rates at the next meeting in September. Hawkish Fed policy outlook serves as a key negative catalyst for gold.

U.S. dollar was mostly flat against a broad basket of currencies as the forex market tried to stabilize after Fed decision and massive intervention in USD/JPY. The dynamics of the U.S. dollar did not have a material impact on gold markets today.

Currently, gold is trying to settle below the support level at $4020 – $4040. This support has has been tested several times and proved its strength. In case gold manages to settle below the $4020 level, it will head towards the next support level at $3930 – $3950.

On the upside, a move above the $4100 level will open the way to the test of the resistance level at $4180 – $4200.

Silver Moves Lower As Gold/Silver Ratio Climbs Above 70

Silver pulled back as gold/silver ratio settled back above the 70.00 level. Gold/silver ratio continues to move back and forth near the 70.00 level. If gold/silver ratio settles above 70.00, it will head towards the 72.50 level, which will be bearish for silver.

The nearest support level for silver is located in the $56.00 – $57.00 range. A successful test of this level will push silver towards the support level 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.

Platinum Retreats Amid Broad Pullback In Precious Metals Markets

Platinum pulled back as traders focused on rising Treasury yields. Palladium markets were down by -2.5%, which was bearish for platinum.

From the technical point of view, platinum remains stuck near the $1650 level. If platinum manages to settle above $1650, it will move towards the nearest resistance level at $1680 – $1700.

On the support side, a move below the $1600 level will push platinum towards the $1550 level. In case platinum declines below $1550, it will head towards the next support, which is located in the $1500 – $1520 range.

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