Gold Gains Ground As Traders Focus On Falling Treasury Yields
Gold rebounds as traders focus on falling Treasury yields and prepare for Fed decision.
Treasury yields are losing ground as some traders are ready to buy bonds despite worries about hawkish Fed. The yield of 2-year Treasuries declined towards the 4.61% level, while the yield of 10-year Treasuries pulled back towards 4.95%.
Analysts and traders expect that Fed will raise the federal funds rate by 25 bps to fight inflation triggered by high oil prices. In case the Fed is less hawkish than the market expects, gold prices will rally. It looks that some traders are ready to bet that Fed will be somewhat dovish, so they buy gold ahead of Fed decision.
U.S. dollar gained ground against a broad basket of currencies as traders focused on the better-than-expected Retail Sales report. Stronger dollar did not put any pressure on gold prices as traders remained focused on the pullback in Treasury yields and waited for Fed decision.
From the technical point of view, gold failed to settle below the support at $4300 – $4320 and rebounded towards the $4350 level. In case gold settles above $4350, it will head towards the $4400 level. A move above $4400 will open the way to the test of the resistance level at $4480 – $4500.
Silver Moves Higher As Traders Wait For Fed Decision
Silver is moving higher as traders focus on the rebound in gold markets. Gold/silver ratio remained mostly unchanged near 67.50, which was neutral for silver markets.
Silver made an attempt to settle above the $65.00 level but lost momentum and pulled back. In case silver climbs above the resistance at $65.00 – $66.00, it will move towards recent highs near the $68.00 level. A move above the $68.00 level will open the way to the test of the psychologically important $70.00 level.
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See all Gold forecastsPlatinum Tests Resistance At $1780 – $1800
Platinum made an attempt to settle above the $1800 level but failed to develop sufficient upside momentum and pulled back. Palladium markets were down by -0.2%, which was neutral for platinum.
The pullback in the oil markets did not provide support to platinum markets today. Brent oil pulled back towards the $106.00 level as traders hoped that Saudi Arabia could restart half of the key oil pipeline in the upcoming days. That said, oil prices stay high, which could put material pressure on the global economy and reduce demand for platinum.
In case platinum manages to settle above the resistance level at $1780 – $1800, it will head towards the next resistance at $1870 – $1890. A move above the $1890 level will push platinum towards the $1950 level.
On the support side, a move below $1750 will push platinum towards the neaerst support, which is located in the $1700 – $1720 range. In case platinum declines below the $1700 level, it will head towards the $1600 level.
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