Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rebounded Towards The $4500 Level

Gold Tests The $4500 Level Despite Rising Oil Prices

Gold gains ground as traders ignore strong dollar and bet on a rebound. Interestingly, rising oil prices did not put pressure on gold markets in today’s trading session.

Brent oil climbed above the $111 level as traders focused on additional escalation in the Middle East and prepared for a potential ground operation in Iran.

In recent weeks, high energy prices served as the key negative catalyst for gold prices as they reduced investors’ appetite for risk. It remains to be seen whether gold markets are ready to get back to their role of a traditional safe-haven asset.

One day’s action does not indicate a change of a trend. However, if gold starts moving in sync with oil, traders will likely increase their long bets amid rising geopolitical tensions.

It should be noted that strong dollar did not put any pressure on gold markets today. U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, climbed above the psychologically important 100.00 level.

The yield of 2-year Treasuries pulled back towards the 3.90% level, while the yeild of 10-year Treasuries climbed above 4.42%. The mixed dynamics in Treasury markets did not have a major impact on precious metals prices today.

Gold climbed back above the support at $4400 – $4420 and is trying to settle above the $4500 level. In case this attempt is successful, gold will head towards the next resistance level, which is located in the $4660 – $4680 range. RSI has recently moved out of the oversold territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

Silver Attempts To Settle Above The Resistance At $71.00 – $72.00

Silver moved higher as traders reacted to the strong performance of gold markets. Gold/silver ratio remained mostly unchanged near the 64.50 level.

It should be noted that the near-term trend in gold/silver ratio remains bullish, which is bearish for silver markets. If gold/silver ratio climbs above the 65.00 level, it will head towards the 68.00 level, putting additional pressure on silver.

Rising gold/silver ratio may indicate the speculative traders reduced their exposure to silver. The strong pullback in gold/silver ratio, which led to a historic rally in silver markets, started from the 80.00 level. If gold/silver ratio gets back to such levels, silver will suffer a sell-off.

Currently, silver attempts to settle above the resistance at $71.00 – $72.00. If silver manages to settle above the $72.00 level, it will move towards the next resistance at $78.00 – $79.00.

Platinum Climbed Towards The $1850 Level

Platinum gained upside momentum amid broad rebound in precious metals markets. Palladium markets were up by more than 2%, providing additional support to platinum prices.

From the technical point of view, platinum needs to settle above the resistance level at $1880 – $1900 to gain additional momentum in the near term. If platinum moves above the $1900 level, it will head towards the next resistance, which is located in the $2040 – $2060 range.

On the support side, a successful test of the support level at $1785 – $1805 will open the way to the test of the $1700 level.

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