Gold (XAUUSD), Silver, Platinum Forecasts – Gold Pulls Back From Session Highs As Dollar Rebounds

Gold Gains Some Ground As Traders Focus On Euro Area Inflation Rate Report

Gold is swinging between gains and losses as traders focus on geopolitical developments and react to inflation data from the EU.

Yesterday, President Trump said that the memorandum of understanding with Iran, which would reopen the Strait of Hormuz, could be ready in the next week. He added that negotiations continued at a rapid pace.

Recent reports indicated that Iranian officials were discussing the final version of the proposal that would be sent to the U.S.

Oil prices moved higher as traders bet that talks would drag on. Israel – Hezbollah conflict added another layer of complexity as fighting continued despite Trump’s efforts to negotiate a truce.

Euro Area Inflation Rate increased from 3% in April to 3.2% in May due to rising energy costs. Core Inflation Rate grew from 2.2% to 2.4%, exceeding the analyst consensus of 2.4%. Forex traders prepare for the start of another rate hike cycle in developed economies, which could serve as a bearish catalyst for gold and other precious metals. Higher interest rates are bearish for gold that pays no interest.

However, rising interest rates do not guarantee lower gold prices as there are many factors that impact gold demand. Central bank purchases will continue to boost demand for gold in the foreseable future as various countries attempt to diversify their reserves.

The nearest resistance level for gold is located in the $4530 – $4550 range. This resistance level has already been tested several times and proved its strength. In case gold settles above the $4550 level, it will head towards the 50 MA at $4629. If gold climbs above the 50 MA, it will head towards the resistance at $4660 – $4680.

Silver Tests The 50 MA At $76.08

Silver gained some ground as gold/silver ratio pulled back below the 59.50 level. The pullback in gold/silver ratio indicates that the appetite for risk increased despite rising oil prices.

From the technical point of view, silver continues its attempts to settle above the 50 MA at $76.08. In case silver manages to settle above the 50 MA, it will head towards the resistance level at $78.00 – $79.00. A successful test of the $79.00 level will push silver towards the next resistance at $85.00 – $86.00.

On the support side, a move below the $74.00 level will push silver towards the strong support level at $71.00 – $72.00. In case silver manages to settle below $71.00, it will head towards the $65.00 level.

Platinum Retreats From Session Highs

Platinum made an attempt to settle above the 50 MA at $1979 but lost momentum and pulled back. Palladium markets were up by +0.7% in today’s trading session.

The nearest support level for platinum is located in the $1880 – $1900 range. A successful test of this level will provide platinum with an opportunity to gain additional downside momentum. In this scenario, platinum will head towards the support at $1780 – $1800.

On the upside, a move above the 50 MA will open the way to the test of the resistance at $2040 – $2060.

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