Gold Gains Ground As Oil Prices Pull Back
Gold is moving higher as traders react to the pullback in the oil markets. Oil prices are down by -1% as traders focus on attempts to de-escalate the situation in the Middle East. Officials from Saudi Arabia, Pakistan, and Turkey have recently travelled to Tehran in order to find ways out of the current situation in the region.
Traders also prepare for Fed Interest Rate Decision, which will be released tomorrow. FedWatch Tool shows that there is a 90.6% probability that Fed will keep the federal funds rate unchanged. The market expects that Fed will not raise rates ahead of midterm elections but will continue the rate hike cycle in December. Treasury yields are mostly flat in today’s trading session as bond traders are not ready for big moves ahead of the key event of the week.
U.S. dollar gained ground against a broad basket of currencies as traders reacted to the better-than-expected Durable Goods Orders report. Economic data shows that the U.S. economy is in great shape, which is bullish for the American currency. Stronger dollar is bearish for dollar-denominated commodities, including gold, but gold traders have decided to ignore forex market dynamics and focused on the situation in the oil markets.
From the technical point of view, gold failed to settle below the support level at $4000 – $4020 and climbed towards the $4050 level. In case gold settles above $4050, it will head towards the $4100 level. A move above $4100 will open the way to the test of the resistance level at $4160 – $4180. If gold climbs above $4180, it will head towards the 50 MA at $4288.
Silver Attempts To Settle Above $54.00
Silver rebounded from session lows and moved higher as traders focused on the performance of gold markets. Gold/silver ratio climbed above the 74.50 level and made an attempt to settle above 75.00. In case gold/silver ratio settles above 75.00, it will head towards the 78.00 level, which will be bearish for silver.
Currently, silver is trying to settle above the $54.50 level. In case this attempt is successful, silver will move towards the resistance level, which is located in the $56.00 – $57.00 range. A successful test of this level will push silver towards the psychologically important $60.00 level. If silver climbs above $60.00, it will head towards the resistance at $61.00 – $62.00.
On the support side, a move below the $53.00 level will open the way to the test of the nearest support at $51.00 – $52.00.
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See all Gold forecastsPlatinum Tested New Lows
Platinum has also managed to rebound from session lows as traders reacted to the pullback in the oil markets. Palladium markets were down by -1.8%, which was bearish for platinum.
Platinum failed to settle below the $1500 level and is trying to settle back above the support at $1520 – $1540. If platinum settles above the $1540 level, it will head towards the resistance level at $1600 – $1620. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.
On the support side, a move below the $1500 level will push platinum towards the support at $1440 – $1460.
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