Gold Moves Higher As Dollar Retreats
Gold gains ground as traders focus on U.S. dollar’s pullback and react to falling Treasury yields.
U.S. dollar is losing ground against a broad basket of currencies as traders take some profits off the table near yearly highs. Dollar’s weakness is bullish for dollar-denominated commodities, including gold.
Treasury yields moved lower as some traders were ready to buy the dip. The yield of 2-year Treasuries pulled back towards the 4.80% level, while the yield of 10-year Treasuries settled near 5.27%.
FedWatch Tool indicates that the probability of a rate hike at the next meeting in October is 19.4%. Traders continue to expect that Fed will raise rates at the meeting in December due to high oil prices. Worries about duration of the rate hike cycle serve as a negative catalyst for gold markets.
Oil prices rebounded from session lows, but this move did not put material pressure on the price of gold. Brent oil managed to climb back above the $100.00 level, indicating that oil traders remained focused on escalation risks in the Middle East.
Currently, gold attempts to settle back above the support at $4160 – $4180. If gold manages to settle above the $4160 level, it will head towards the next resistance level at $4300 – $4320. On the support side, a move below the $4100 level will open the way to the test of the next support at $4000 – $4020.
Silver Attempts To Settle Above $62.00
Silver remains stuck in a tight range as gold/silver ratio is mostly unchanged. it looks that traders are waiting for stronger catalysts.
If silver settles above the $62.00 level, it will head towards the 50 MA at $64.16. A move above the 50 MA will push silver towards the resistance at $65.00 – $66.00. RSI is in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge.
On the support side, a move below the psychologically important $60.00 level will open the way to the test of the support at $56.00 – $57.00.
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See all Gold forecastsPlatinum Moves Lower As Traders Ignore Falling Treasury Yields
Platinum is losing ground despite weaker dollar and falling Treasury yields. Traders focus on the rebound in the oil markets, which is bearish for platinum. High oil prices put significant pressure on global economy and may reduce demand for platinum. Palladium markets are down by -0.1%, which is neutral for platinum.
The technical picture remains unchanged as platinum continues its attempts to settle below the support level at $1700 – $1720. Platinum has already made a number of attempts to settle below $1700, but these attempts yielded no results. If platinum stays below the $1700 level, it will head towards the support level at $1600 – $1620.
On the upside, platinum needs to climb above the $1720 to gain upside momentum in the near term. In this case, platinum will head towards the 50 MA at $1760. A move above the 50 MA will open the way to the test of the resistance level at $1780 – $1800.
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