Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rebounds From Session Lows As Oil Pulls Back

Gold Rebounds Amid Rising Appetite For Risk

Gold rebounded from session lows as traders focused on the pullback in the oil markets. Brent oil pulled back below the $103.00 level amid reports indicating U.S. and Iran were moving closer to the deal.

An Iranian news agency has recently reported that the new U.S. proposal “narrowed the gaps”. It should be noted that there is no official confirmation of this report.

However, traders are ready to bet that U.S. and Iran could announce a deal soon. Falling oil prices raised demand for risk assets, which was bullish for gold. Gold continues to trade as a risk asset and benefits from the decline in geopolitical premium.

Treasury yields pulled back from session highs and moved lower as traders reacted to the reports on the situation in the Middle East. The yield of 2-year Treasuries declined below the 4.05% level, while the yield of 10-year Treasuries pulled back towards 4.55%. Falling Treasury yields are bullish for gold that pays no interest.

U.S. dollar moved lower against a broad basket of currencies, providing additional support to gold and other dollar-denominated commodities.

From the technical point of view, gold continues its attempts to settle above the resistance at $4530 – $4550. In case gold manages to settle above the $4550 level, it will head towards the next resistance, which is located in the $4660 – $4680 range.

On the support side, a move below the $4470 level will push gold towards the support level at $4350 – $4370.

Silver Moves Higher As Gold/Silver Ratio Drops

Silver gains ground as gold/silver ratio declined towards the 59.00 level. The rising appetite for risk puts pressure on gold/silver ratio. In case gold/silver ratio declines below the 59.00 level, it will head towards the 56.00 level, which will be bullish for silver.

Silver is moving towards the resistance level at $78.00 – $79.00. A move above this level will open the way to the test of the next resistance at $85.00 – $86.00. In case silver climbs above $86.00, it will move towards the $90.00 level.

In case silver moves back below the 50 MA at $76.14, it will head towards the nearest support, which is located in the $71.00 – $72.00 range.

Platinum Tests The $1950 Level

Platinum gained some ground amid rising demand for precious metals. Palladium markets gained 0.8%, providing additional support to platinum.

From a big picture point of view, platinum will remain sensitive to geopolitical news. In case U.S. and Iran announce a deal, the global appetite for risk will grow. In this scenario, platinum will have a good chance to gain additional upside momentum.

Currently, platinum is trying to settle above the $1950 level. In case this attempt is successful, platinum will head towards the 50 MA at $1992. If platinum manages to settle above the 50 MA, it will move towards the next resistance level at $2040 – $2060.

On the support side, the nearest support level for platinum is located in the $1880 – $1900 range. A successful test of this level will push platinum towards the next support level at $1780 – $1800.

If you’d like to know more about how to trade gold and silver, please visit our educational area.