Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rallies As Geopolitical Risks Decline

Gold Gains Ground Amid Rising Demand For Risk Assets

Gold rallied as traders focused on U.S – Iran deal. The U.S. and Iran reached an interim ceasefire agreement that would reopen the Strait of Hormuz and lift the naval blockade of Iranian ports. Oil prices pulled back by more than 4% as traders reacted to the deal.

President Trump said that the deal “will bring peace and stability to the whole region.” The signing of the memorandum of understanding is expected to take place in Switzerland on Friday. According to Trump, the text of the memorandum would be released some time after Friday.

Treasury yields pulled back as traders reacted to geopolitical developments. The yield of 2-year Treasuries declined towards the 4.05% level, while the yield of 10-year Treasuries settled near 4.47%. It should be noted that the pullback in Treasury yields was moderate as traders continue to expect that Fed will raise rates to fight inflation.

U.S. dollar is losing some ground against a broad basket of currencies as demand for safe-haven assets declined. Weaker dollar provided additional support to gold markets in today’s trading session.

Currently, gold is trying to settle above the resistance level at $4370 – $4390. In case gold manages to settle above the $4390 level, it will head towards the next resistance, which is located in the $4580 – $4600 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

On the support side, a move below the $4300 level will push gold towards the next support, which is located in the $4180 – $4200 range.

Silver Tests Resistance At $71.00 – $72.00

Silver tested new highs as rebound continued. Gold/silver ratio declined below the 62.00 level, providing additional support to silver. In case gold/silver ratio settles below the 50 MA at 60.79, it will move towards the 58.00 level, which will be bullish for silver.

If silver climbs above the resistance at $71.00 – $72.00, it will head towards the 50 MA at $75.48. A move above the 50 MA will open the way to the test of the resistance at $78.00 – $79.00.

On the support side, a move below the $68.50 level will push silver towards the nearest support, which is located in the $65.00 – $66.00 range.

Platinum Rallies Amid Strong Demand For Precious Metals

Platinum gained upside momentum amid broad rally in precious metals markets. Palladium markets were up by +4.8%, which was bullish for platinum.

From the technical point of view, platinum attempts to settle above the resistance level at $1780 – $1800. In case this attempt is successful, platinum will head towards the next resistance at $1880 – $1900. If platinum climbs above the $1900 level, it will move towards the 50 MA at $1953.

On the support side, a move below the $1750 level will push platinum towards the nearest support, which is located in the $1680 – $1700 range.

If you’d like to know more about how to trade gold and silver, please visit our educational area.