Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rallies As Traders Bet On De-Escalation In The Middle East

Gold Tests The $4800 Level

Gold gained strong upside momentum as traders focused on the potential second round of negotiations between U.S. and Iran.

According to recent reports, U.S. and Iran may resume talks this week in Islamabad. Other venues have been discussed as well. U.S. has imposed a blockade on Iranian ports, but ceasefire holds well.

Traders also react to the start of Israel – Lebanon talks. Currently, Israel continues its operation against Hezbollah in Lebanon. It should be noted that Hezbollah does not take part in these talks, which are led by the official government of Lebanon.

Oil prices moved lower as traders focused on potential de-escalation in the Middle East. WTI oil declined towards the $92.00 level, while Brent oil pulled back towards $95.00. Oil traders bet that U.S. and Iran will be able to reach a deal this weekend. Falling oil prices provided material support to gold and other precious metals, which continue to trade as riskier assets.

U.S. dollar moved lower against a broad basket of currencies as traders reacted to the lower-than-expected PPI report. Weak dollar is bullish for gold and other dollar-denominated commodities.

The yield of 2-year Treasuries pulled back towards the 3.76% level, providing additional support to gold markets. Falling yields serve as a positive catalyst for gold that pays no interest.

Currently, gold is trying to settle above the $4800 level. In case this attempt is successful, gold will move towards the nearest resistance, which is located in the $4860 – $4880 range. A successful test of the resistance at $4860 – $4880 will open the way to the test of the next resistance level at $4980 – $5000.

On the support side, a move below the $4750 level will push gold towards the support levle at $4660 – $4680. In case gold declines below the $4660 level, it will head towards $4550.

Silver Soars Amid Rising Appetite For Risk

Silver rallied as gold/silver ratio declined towards the 60.50 level. In case gold/silver ratio stays below 61.50, it will head towards the 57.50 level, which will be bullish for silver.

Falling oil prices provided significant support to silver as the appetite for risk increased. Fluctuations of speculative demand continue to serve as the key catalyst for silver prices.

From the technical point of view, silver attempts to settle above the resistance level at $78.00 – $79.00. If silver manages to settle above the $79.00 level, it will move towards the next resistance at $84.00 – $85.00. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.

Platinum Remains Stuck Near Resistance At $2040 – $2060

Platinum continued its attempts to settle above the resistance at $2040 – $2060 amid rising demand for precious metals. Palladium markets were mostly flat in today’s trading session, which was neutral for platinum.

If platinum settles above the $2060 level, it will move towards the next resistance level, which is located in the $2210 – $2230 range.

On the support side, a move below the psychologically important $2000 level will push platinum towards the nearest support at $1880 – $1900.

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