Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rallies As Traders Ignore Rising Yields

Gold Moves Higher Amid Strong Demand For Precious Metals

Gold gains ground as traders bet on a rebound despite rising Treasury yields and stronger dollar.

Treasury yields are moving higher as bond traders worry that high oil prices will fuel inflation and force the Fed to raise rates. The yield of 2-year Treasuries climbed above the 4.25% level, while the yield of 10-year Treasuries settled above 4.62%. Higher yields are bearish for gold that pays no interest, but gold traders are ready to bet that demand from central banks will increase after the strong pullback from historic highs.

U.S. dollar gained ground against a broad basket of currencies as rising oil prices boosted demand for safe-haven assets. Interestingly, the dynamics of oil markets did not put any pressure on gold in today’s trading session.

Traders will start wondering whether gold has finally reached a bottom. It looks that there’s strong demand for gold near the psychologically important $4000 level.

Currently, gold is trying to settle above the resistance level at $4020 – $4040. In case this attempt is successful, gold will head towards the $4100 level. If gold climbs above $4100, it will move towards the next resistance, which is located in the $4180 – $4200 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 $4000 level will push gold towards the support level at $3930 – $3950. A move below the $3930 level will indicate that gold is ready to gain additional downside momentum.

Silver Tests The $59.00 Level As Gold/Silver Ratio Pulls Back

Silver rallied as gold/silver ratio pulled back towards the 69.00 level. A move below the 69.00 level will push gold/silver ratio towards the 68.00 level, which will be bullish for silver.

Silver climbed above the resistance at $56.00 – $57.00 and is trying to settle above the $59.00 level. In case silver climbs above $59.00, it will head towards the resistance level at $61.00 – $62.00. A move above $62.00 will push silver towards the $65.00 level.

On the support side, silver needs to settle back below the $56.00 level to have a chance to gain downside momentum in the near term. In this case, silver will move towards the support at $51.00 – $52.00.

Platinum Gains Ground As Traders Ignore Rising Oil Prices

Platinum is moving higher amid broad rally in precious metals markets. Palladium prices are up by +2.2%, providing additional support to platinum.

From the technical point of view, platinum continues its attempts to settle above the resistance level at $1600 – $1620. If platinum manages to settle above the $1620 level, it will move towards the resistance level at $1680 – $1700. In case platinum climbs above $1700, it will head towards the 50 MA at $1746.

On the support side, a move below the $1550 level will push platinum towards the support at $1500 – $1520.

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