Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rebounds As Oil Prices Pull Back

Gold Tests The $4050 Level

Gold is moving higher as traders react to the pullback in the oil markets. Oil prices are down by -4% as traders focus on mediators’ attempts to bring U.S. and Iran back to negotiations.

President Trump has recently said that he could make a decision to make attacks “bigger than ever before”. Iran has already promised to retaliate. It remains to be seen whether mediators’ efforts will bring any results in the near term.

Treasury yields pulled back as bond traders focused on falling oil prices. The yield of 2-year Treasuries declined towards the 4.32% level, while the yield of 10-year Treasuries settled near 4.67%. Falling Treasury yields provided support to gold that pays no interest.

It should be noted that Fed policy outlook remains hawkish. The market believes that there is a 55.4% chance that Fed will raise rates by 25 bpd in September. The probability of two rate hikes by September is estimated at 24.7%. Hawkish Fed policy outlook will remain a key negative catalyst for gold in the near term.

U.S. dollar was mostly flat against a broad basket of currencies despite the pullback in Treasury yields. Fluctuations of the American currency did not have a material impact on gold price dynamics today.

Gold failed to settle below the support level at $4020 – $4050 and is trying to settle back above the $4050 level. In case this attempt is successful, gold will move towards the nearest resistance level at $4180 – $4200. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, a successful test of the support level at $4020 – $4040 will open the way to the test of the next support level at $3930 – $3950.

Silver Rebounds As Gold/Silver Ratio Falls

Silver gained ground as gold/silver ratio pulled back below the 69.50 level. In case gold/silver ratio stays below 69.50, it will head towards the 68.00 level, which will be bullish for silver.

From the technical point of view, silver failed to settle below the support level at $56.00 – $57.00 and rebounded towards the $59.00 level. In case silver manages to settle back above $59.00, it will head towards the nearest resistance level, which is located in the $61.00 – $62.00. This resistance level has been tested several times and proved its strength. A move above the $62.00 level will push silver towards the 50 MA at $65.45.

Platinum Remains Stuck Near The $1600 Level

Platinum is mostly flat as traders evaluate their next moves amid falling oil markets and lower Treasury yields. Palladium markets are down by -0.3%, which is neutral for platinum.

In case platinum stays below the support level at $1600 – $1620, it will head towards the next support at $1500 – $1520. A move below the $1500 level will provide platinum with a chance to gain additional downside momentum.

On the upside, platinum needs to settle back above the $1620 level to have a chance to gain upside momentum in the near term. In this case, platinum will head towards the resistance at $1680 – $1700.

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