Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rebounds From Session Lows As Traders Bet U.S. – Iran Talks Will Resume

Gold Rebounded Towards The $4750 Level

Gold rebounds from session lows as traders monitor the situation in the Middle East and react to U.S. decision to impose a naval blockade on Iran.

Negotiations between U.S. and Iran did not lead to a deal. As a result, U.S. has sent more than 15 warships to block the Strait of Hormuz. According to recent reports, U.S. plans to seize ships going out of Iran.

President Trump said that other countries would take part in the blockade. European leaders have already denied that they would assist the U.S. in its blockade. Instead, they want to open the Strait of Hormuz for free navigation, which is impossible in current conditions.

Put simply, the Strait of Hormuz is now blocked by both Iran and U.S. Oil prices rallied as traders reacted to this surprising development. However, prices have already moved away from session highs as traders bet on a new round of negotiations between U.S. and Iran.

The market is rather optimistic, and traders were ready to buy the dip in riskier assets. Rising demand for such assets provided support to gold markets, which managed to rebound from session lows.

U.S. dollar has moved away from session highs and pulled back into negative territory, providing additional support to gold prices. Weaker dollar is bullish for gold and other dollar-denominated commodities.

From the technical point of view, gold found support in the $4660 – $4680 range and climbed towards the $4750 level. If gold manages to settle above $4750, it will head towards the nearest resistance level, which is located in the $4860 – $4880 range. A move above the $4880 level will push gold towards the psychologically important $5000 level.

On the support side, a successful test of the support at $4660 – $4680 will open the way to the test of the next support at $4540 – $4560.

Silver Moves Away From Session Lows As Traders Buy The Dip

Silver climbed back above the $75.00 level as gold/silver ratio settled near the 62.50 level. Traders ignored U.S. blockade of Iran and focused on the potential new round of negotiations.

The nearest resistance level for silver is located in the $78.00 – $79.00 range. If silver climbs above the $79.00 level, it will head towards the next resistance at $84.00 – $85.00.

On the support side, the nearest support level for silver is located in the $71.00 – $72.00 range. In case silver declines below the $72.00 level, it will head towards the $66.00 level.

Platinum Tests Resistance At $2040 – $2060

Platinum gained ground as traders bought the dip despite the strong rally in the oil markets. Palladium markets were up by almost 3%, providing additional support to platinum.

Currently, platinum attempts to settle above the resistance level at $2040 – $2060. This resistance level has already been tested several times and proved its strength.

If platinum climbs above the $2060 level, it will move towards the next resistance at $2210 – $2230. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

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