Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rebounds From Multi-Month Lows As Traders Buy The Dip

Gold Rebounds After Strong Sell-Off

Gold tested new lows as traders waited for potential U.S. strikes against Iran’s energy infrastructure.

Prices rebounded from session lows as President Trump said that Iran was negotiating with the U.S. Trump added that he delayed the strikes for five days and noted that negotiations were productive. According to Trump, this time “Iran means business”.

Oil markets suffered a strong sell-off as traders reacted to Trump’s comments. WTI oil declined below the $90.00 level, while Brent oil pulled back towards $101.00. Falling oil prices boosted appetite for risk, which was bullish for gold and other precious metals.

Gold has been trading as a riskier asset in recent weeks due to the high level of leveraged positions in the market after a historical rally. In this light, rising demand for safe-haven assets, which has traditionally boosted gold prices, has turned into a bearish catalyst for gold markets.

It looks that margin calls served as one of the key catalysts for gold markets at the start of the trading session. Those traders who had some “dry powder” used the sell-off as an opportunity to increase their long positions at attractive levels.

It remains to be seen whether traders are ready to bet that the war in the Middle East would end soon. Previous negotiations with Iran ended when U.S. and Israel decided to attack Iran to prevent the country from having nuclear weapons.

Currently, gold is trying to settle back above the support level at $4400 – $4420. In case this attempt is successful, gold will move towards the resistance level, which is located in the $4660 – $4680 range. RSI is in the oversold territory, so the risks of a rebound are increasing.

Silver Moved Back Into Positive Territory

Silver made an attempt to settle below the $61.00 level but lost momentum and rebounded above the support at $64.00 – $65.00.

Gold/silver ratio pulled back below the 64.00 level, providing significant support to silver markets.

The nearest resistance level for silver is located in the $71.00 – $72.00 range. If silver climbs above the $72.00 level, it will move towards the next resistance level at $78.00 – $79.00.

On the support side, a move below the support at $64.00 – $64.50 will open the way to the test of the $61.00 level. In case silver declines below $61.00, it may quickly get to the test of the $57.00 level.

Platinum Attempts To Settle Back Above The $1850 Level

Platinum has also tested new lows amid broad pullback in precious metals markets.

Interestingly, palladium markets have already managed to rebound into positive territory.

The sell-off in the oil markets is a bullish catalyst for platinum markets, which are dependent on industrial demand. In case oil prices continue to move lower, platinum may get more support.

From the technical point of view, platinum made an attempt to settle below the $1700 level but lost mometnum and rebounded above the $1850 level. The nearest resistance level for platinum is located in the $1880 – $1900 range.

A successful test of the resistance at $1880 – $1900 will open the way to the test of the next resistance at $2040 – $2060. RSI is in the moderate territory, so there is plenty of room to gain upside momentum in case the right catalysts emerge.

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