Gold Gains Ground As Treasury Yields Fall
Gold rebounds as traders focus on the strong pullback in Treasury yields. The yield of 2-year Treasuries declined below the 4.76% level, while the yield of 10-year Treasuries settled below 5.09%.
Treasury yields pulled back as traders rushed to buy bonds amid worries about AI. CoreWeave, an AI cloud-computing provider, found itself under strong pressure. The company’s credit-default swaps priced in a more than 50% chance of default in the next five years. The sell-off in CoreWeave’s bonds triggered a sell-off in AI-related stocks and raised demand for U.S. Treasuries.
Higher-than-expected PPI report did not have any impact on the Treasury market today as traders rushed to buy safe-haven bonds amid AI uncertainty. PPI increased by +1.3% month-over-month in September, highlighting growing inflationary pressure.
FedWatch Tool indicates that the probability for a rate hike at the next Fed meeting in October declined to 29.3%. Traders believe that Fed will not raise rates despite inflation data. The falling probability of a rate hike provided additional support to gold markets.
U.S. dollar pulled back against a broad basket of currencies as traders reacted to the rally in U.S. bond markets. Weaker dollar served as an additional positive catalyst for gold.
Currently, gold is trying to settle back above the resistance level at $4160 – $4180. In case gold manages to settle above the $4180 level, it will head towards the resistance, which is located in the $4300 – $4320 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
Silver Attempts To Settle Back Above $57.00
Silver gains ground as traders focus on weaker dollar and falling Treasury yields. Gold/silver ratio pulled back below the 73.00 level, providing additional support to silver.
If silver manages to settle back above the key support level at $56.00 – $57.00, it will head towards the psychologically important $60.00 level. A move above $60.00 will push silver towards the resistance at $61.00 – $62.00.
On the support side, a successful test of the support at $56.00 – $57.00 will open the way to the test of the next support at $51.00 – $52.00.
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See all Gold forecastsPlatinum Gains Ground Amid Strong Demand For Precious Metals
Platinum is moving higher amid broad rebound in precious metals markets. Palladium markets are up by +3.4%, which is bullish for platinum.
If platinum manages to settle above the support at $1600 – $1620, it will head towards the resistance level at $1700 – $1720. A move above $1720 will push platinum towards the 50 MA at $1755.
On the support side, platinum needs to settle below the support level at $1600 – $1620 to gain downside momentum in the near term. In this case, platinum will move towards the next support at $1520 – $1540.
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