Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rallies As Traders Bet On Dovish Fed

Gold Tests New Highs As Treasury Yields Fall

Gold rallied as traders focused on the weak Non Farm Payrolls report. The report showed that U.S. economy lost -23,000 jobs in July, compared to analyst forecast of +80,000.

The report changed the Fed policy outlook as traders bet that Fed would not raise rates at the meeting in September due to weakness of the job market. FedWatch Tool indicates that there is a 58.1% probability that Fed will keep rates unchanged in September. Previously, traders expected that Fed would raise rates by 25 bps.

Treasury yields pulled back as traders focused on changes in Fed policy outlook. The yield of 2-year Treasuries declined towards the 4.20% level, while the yield of 10-year Treasuries settled near 4.65%. Falling Treasury yields provided material support to gold markets in today’s trading session.

U.S. dollar pulled back against a broad basket of currencies as traders reacted to job market data. Weak dollar served as an additional bullish catalyst for gold.

The nearest resistance level for gold is located in the $4360 – $4380 range. A successful test of the resistance at $4360 – $4380 will push gold towards the next resistance at $4480 – $4500. RSI remains 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 back towards the support at $4180 – $4200.

Silver Rallies As Traders Focus On NFP Data

Silver tested new highs, supported by falling Treasury yields and weaker dollar. Gold/silver ratio pulled back towards the 68.50 level, providing additional support to silver markets.

From the technical point of view, silver moved above the resistance at $61.00 – $62.00 and made an attempt to settle above the next resistance level at $65.00 – $66.00. A move above the $66.00 level will push silver towards the $71.00 level.

On the support side, a move below the $61.00 level will open the way to the test of the psychologically important $60.00 level. In case silver manages to settle below $60.00, it will head towards the support level at $56.00 – $57.00.

Platinum Tests Resistance At $1780 – $1800

Platinum made another attempt to settle above the resistance level at $1780 $1800 but lost momentum and pulled back. The resistance at $1780 – $1800 has been tested several times and proved its strength. Palladium markets were up by +0.5% in today’s trading session, which was neutral for platinum.

In case platinum manages to settle above the $1800 level, it will head towards the next resistance, which is located in the $1870 – $1890 range. A successful test of the $1890 level will push platinum towards the $1950 level.

On the support side, the nearest support level for platinum is located in the $1680 – $1700 range. A move below the $1680 level will push platinum towards the 50 MA at $1666. In case platinum declines below the 50 MA, it will head towards the $1600 level.

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