Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rallies As Traders React To NFP Report

Gold Tests The $4100 Level As Non Farm Payrolls Miss Estimates

Gold rallied as traders reacted to the weak Non Farm Payrolls report. The report showed that U.S. economy added just 57,000 jobs in June, compared to analyst forecast of 110,000.

U.S. dollar suffered a sell-off after the release of Non Farm Payrolls data. Traders rushed to reduce their bets on hawkish Fed. Weaker dollar is bullish for gold and other dollar-denominated commodities as it makes them cheaper for buyers who have other currencies.

The yield of 2-year Treasuries pulled back towards the 4.13% level, providing additional support to gold markets. It should be noted that the yield of 10-year Treasuries gained some ground in today’s trading session.

FedWatch Tool indicates that there is a 47.3% chance that Fed will raise the federal funds rate in September. The market has become more sceptical about the possibility of two rate hikes by December. The probability of this scenario is 28.3%. These changes in Fed policy outlook served as the key positive catalyst for gold.

Currently, gold is trying to settle above the $4100 level. In case this attempt is successful, gold will head towards the nearest resistance level, which is located in the $4180 – $4200 range.

On the support side, the nearest support for gold is located in the $4020 – $4040 range. A successful test of this level will push gold towards the next support level at $3880 – $3900.

Silver Rallies As Dollar Pulls Back

Silver is moving higher as gold/silver ratio pulled back below the 68.00 level. A move below the 67.50 level will push gold/silver ratio towards the 66.00 level, which will be bullish for silver.

From the technical point of view, silver continues its attempts to settle above the resistance level at $61.00 – $62.00. If silver manages to settle above $62.00, it will head towards the next resistance at $65.00 – $66.00. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

On the support side, silver needs to settle back below the $60.00 level to have a chance to gain downside momentum in the near term. In this case, silver will head towards the support level at $56.00 – $57.00.

Platinum Tests Resistance At $1600 – $1620

Platinum gains ground amid broad rally in precious metals markets, which was triggered by changes in Fed policy outlook after the disappointing Non Farm Payrolls report. Palladium markets are up by +3.9%, which is bullish for platinum.

Platinum attempts to settle above the resistance level at $1600 – $1620. This resistance level has been tested many times and proved its strength. A move above the $1620 level will provide platinum with an opportunity to gain additional upside momentum. In this case, platinum will head towards the next resistance at $1680 – $1700.

On the support side, a move below the $1560 level will push platinum back towards the support, which is located in the $1500 – $1520 range.

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