Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rebounds As Traders Bet On Iran Deal

Gold Gains Ground As Traders Focus On Geopolitics And U.S. Economic Data

Gold rebounds as traders focus on U.S. economic data and geopolitical developments. U.S. GDP Growth Rate report indicated that GDP Growth Rate was +1.6% in the first quarter, compared to analyst forecast of +2.0%.

The weaker-than-expected GDP Growth Rate report showed that the U.S. economy may have started to slow down due to rising oil prices in March, which means that Fed would not hurry to raise rates.

Treasury yields moved lower as bond traders reacted to the report. The yield of 2-year Treasuries declined towards the 4.02% level, while the yield of 10-year Treasuries settled near 4.45%. Falling Treasury yields provided support to gold and other precious metals that pay no interest.

U.S. dollar moved lower against a broad basket of currencies as traders focused on falling Treasury yields. Weaker dollar provided additional support to gold markets.

Traders also reacted to the developments in the oil markets. Oil prices pulled back amid reports indicating that U.S. and Iran have agreed to a preliminary deal. It should be noted that the reports indicated that President Trump has not yet approved the deal. That said, Brent oil prices are down by about -1.5%, so traders are ready to bet that U.S. and Iran are moving closer to a deal.

Gold received support near the $4370 level and rebounded above the $4500 level. The nearest resistance level for gold is located in the $4530 – $4550 range. A successful test of this level will open the way to the test of the 50 MA at $4630. In case gold climbs above the 50 MA, it will head towards the resistance at $4660 – $4680.

Silver Attempts To Settle Above $76

Silver gained ground as traders focused on falling Treasury yields and weaker dollar. The appetite for risk is rising due to the pullback in the oil markets, which is bullish for silver.

From the technical point of view, silver, failed to settle below the support at $71.00 – $72.00 and rebounded towards the 50 MA at $75.77. In case silver manages to settle back above the 50 MA, it will head towards the resistance level at $78.00 – $79.00.

On the support side, silver needs to settle below the support at $71.00 – $72.00 to have a chance to gain sustainable downside momentum in the near term. A move below the $71.00 level will open the way to the test of the support at $65.00 – $66.00.

Platinum Is Mostly Flat As Traders Buy The Dip

Platinum made an attempt to settle below the support at $1880 – $1900 but lost momentum and rebounded above the $1900 level. Palladium markets were down by -1.5% despite falling oil prices and rising demand for precious metals.

If platinum stays above the $1900 level, it will head towards the 50 MA at $1979. A move above the 50 MA will push platinum towards the resistance level at $2040 – $2060.

On the support side, a successful test of the $1880 level will open the way to the test of the next support, which is located in the $1780 – $1800 range.

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