Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rallies As Eurozone Inflation Falls More Than Expected

Gold Gains Ground As Euro Area Inflation Rate Drops To 2.8%

Gold rebounds as traders focus on inflation data from the EU and react to comments from European officials.

Euro Area Inflation Rate decreased from 3.2% in May to 2.8% in June, compared to analyst consensus of 3%. Core Inflation Rate declined from 2.6% to 2.4%, while analysts expected that it would remain unchanged at 2.6%. The report indicated that inflation was falling faster than expected. The strong pullback in the oil markets has already had an impact on prices, which is good news for gold and other precious metals.

European Central Bank President Christine Lagarde said that risks to inflation have become balanced compared to where they were just a few weeks ago. ECB Governing Council member Martins Kazaks noted that ECB was in no rush to raise rates again. According to Kazaks, “the urgency of consecutive moves has decreased significantly”.

Gold bulls hope that U.S. inflation will also pull back and Fed will be less hawkish than previously expected, which will be bullish for gold markets.

U.S. dollar gained ground against a broad basket of currencies as traders focused on the ISM Manufacturing PMI report and prepared for tomorrow’s Non Farm Payrolls data. Stronger dollar did not put any pressure on gold prices in today’s trading session.

Treasury yields were mixed despite the strong pullback in the oil markets. WTI oil declined towards the $68.00 level, while Brent oil pulled back towards $71.00 level. The dynamics of Treasury yields did not have a material impact on gold price dynamics today.

Silver Rebounds As Gold/Silver Ratio Pulls Back Below 68

Silver rallied as gold/silver ratio declined below the 68.00 level. If gold/silver ratio stays below 68.00, it will head towards the 66.00 level, which will be bullish for silver.

The nearest resistance level for silver is located in the $61.00 – $62.00 range. A move above the 62.00 level will push silver towards the next resistance at $65.00 – $66.00. In case silver climbs above the $66.00 level, it will head towards the 50 MA at $71.89.

On the support side, silver needs to settle below the support at $56.00 – $57.00 to gain additional downside momentum in the near term. This support level has been tested many times and proved its strength.

Platinum Tests Resistance At $1600 – $1620

Platinum moved higher amid broad rebound in precious metals markets. Palladium markets are up by +0.8%, which is bullish for platinum. The strong pullback in the oil markets provided material support to platinum, which is dependent on industrial demand.

Currently, platinum is trying to settle above the resistance level at $1600 – $1620. In case platinum manages to settle above the $1620 level, it will head towards the next resistance at $1680 – $1700.

On the support side, a move below the $1550 level will push platinum back towards the nearest support at $1500 – $1520. RSI has recently moved away from the oversold territory, so there is enough room to gain additional downside momentum in the near term.

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