Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rebounds As Dollar Dives

Gold Attempts To Settle Above $4600

Gold rebounded as traders focused on U.S. dollar’s pullback and the sell-off in the oil markets.

U.S. dollar was under strong pressure against a broad basket of currencies as BoJ intervened to support the yen. Hawkish messages from ECB and BoE, which left interest rates unchanged but signaled that they were ready for a hike at next meetings, put additional pressure on the American currency. Weak dollar is bullish for gold and other dollar-denominated commodities as it makes them cheaper for buyers who have other currencies.

Treasury yields moved lower, providing additional support to gold markets. The yield of 2-year Treasuries pulled back below the 3.90% level, while the yield of 10-year Treasuries settled below 4.40%.

Importantly, the yield of 30-year Treasuries failed to settle above the psychologically important 5.00% level. Gold traders should continue to monitor dynamics of 30-year Treasuries as a move above the 5.00% level may have a significant impact on global markets.

Oil prices pulled back despite lack of progress in U.S. – Iran negotiations. Trading volume was thin as Brent oil traders switched from June contract to July contract. Falling oil prices boosted demand for risk assets and pushed gold prices higher.

Gold found support near the $4550 level and is heading towards the nearest resistance, which is located in the $4660 – $4680 range. If gold climbs above the $4680 level, it will head towards the 50 MA at $4840. A move above the 50 MA will open the way to the test of the resistance at $4880 – $4900.

Silver Rebounds As Dollar Falls

Silver gained strong upside momentum as gold/silver ratio pulled back below the 63.00 level.

The pullback in the oil markets provided significant support to silver, attracting speculative traders who used the recent pullback as an opportunity to establish long positions at attractive levels.

Silver failed to settle below the support level at $71.00 – $72.00 and rebounded towards the $74.00 level. if silver settles above $74.00, it will head towards the resistance, which is located in the $78.00 – $79.00 range.

On the support side, a successful test of the support at $71.00 – $72.00 will push silver towards the support level at $65.00 – $66.00.

Platinum Rallies Amid Strong Demand For Precious Metals

Platinum rallied, supported by weak dollar and falling oil prices. Palladium markets were up by more than 5%, providing significant support to platinum.

The rebound is strong, and it looks that some short-sellers were caught off guard. It should be noted that many countries around the globe would celebrate Labour Day tomorrow, so today’s liquidity in commodity markets was thin. Short squeezes often happen at times when trading volumes drop, making it easier to push prices higher.

From the technical point of view, platinum managed to settle back above the support at $1880 – $1900 and is trying to settle above the $1950 level. In case this attempt is successful, platinum will move towards the next resistance level, which is located in the $2040 – $2060 level.

On the support side, platinum needs to settle below the $1880 level to gain sustainable downside momentum in the near term. In this case, platinum will head towards the next support level at $1780 – $1800.

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