Gold Gains Ground As Oil Prices Fall
Gold rebounds after Friday’s pullback as traders focus on the strong sell-off in the oil markets. Oil prices are down by -6.5% as traders react to recent news from the Middle East. Iran’s Supreme Leader Khamenei granted certain powers to the government, which will provide the country’s President with an opportunity to pursue peace talks. The sell-off in the oil markets boosted investors’ appetite for risk, which was bullish for gold markets.
Treasury yields moved lower as bond traders focused on the pullback in the oil makrets. The yield of 2-year Treasuries declined towards the 4.58% level, while the yield of 10-year Treasuries pulled back below 4.88%. Traders bought bonds as lower oil prices could make Fed less hawkish. That said, FedWatch Tool indicates that there is a 74.9% probability that Fed will raise rates at the next meeting in December.
U.S. dollar pulled back against a broad basket of currencies as demand for safe-haven assets declined. Weaker dollar provided additional support to gold markets in today’s trading session.
Currently, gold is trying to settle above the $3950 level. In case this attempt is successful, gold will move towards the nearest resistance level at $4000 – $4020. If gold climbs above the $4020 level, it will head towards $4100. A move above $4100 will open the way to the test of the next resistance at $4180 – $4200.
Silver Rebounds From Yearly Lows
Silver moved away from yearly lows as gold/silver ratio pulled back towards the 78.00 level. In case gold/silver ratio settles below 78.00, it will head towards the 75.00 level, which will be bullish for silver.
Silver climbed above the psychologically important $50.00 level and is trying to settle above the resistance at $51.00 – $52.00. In case this attempt is successful, silver will move towards the $55.00 level. If silver manages to settle above $55.00, it will head towards the next resistance level, which is located in the $56.00 – $57.00 range.
On the support side, a move below $50.00 will push silver towards the support at $47.00 – $48.00. RSI has recently moved back into moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
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See all Gold forecastsPlatinum Tests Resistance At $1440 – $1460
Platinum gained ground amid broad rebound in precious metals markets. Falling oil prices are bullish for platinum, which is dependent on industrial demand. Palladium markets pulled back by -1%, which was bearish for platinum.
From the technical point of view, platinum attempts to settle back above the resistance level at $1440 – $1460. If this attempt is successful, platinum will head towards the next resistance, which is located in the $1520 – $1540 range. A move above the $1540 level will push platinum towards the $1600 level.
On the support side, platinum needs to settle below the $1400 level to have a chance to gain additional downside momentum in the near term. In this case, platinum will head towards the support level at $1350 – $1370.
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