Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rebounds From Session Lows As Treasury Yields Pull Back
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Key Points:
- Gold is trying to settle back above the $4300 level as oil markets pull back from session highs.
- Silver attempts to settle above $63.50 as traders focus on the pullback in Treasury yields.
- Platinum made an attempt to settle below the $1750 level.
Gold Moves Back Above $4300 As Treasury Yields Decline
Gold rebounded from session lows as oil prices pulled back from session highs. Earlier, oil markets rallied amid reports indicating that a key Saudi pipeline would be closed for several weeks after an attack. The East-West Pipeline was used to bypass the Strait of Hormuz and export oil through Bab-el-Mandeb Strait.
Oil has started to move lower after President Trump announced that Russia and Ukraine agreed to halt attacks on each other’s energy infrastructure. I’d note that neither Russia nor Ukraine confirmed the deal.
Ukraine’s Zelenskiy said that Ukraine would not strike Russia’s energy infrastructure if Russia stopped attacking Ukraine’s energy facilities, but these words did not confirm that the deal existed.
Treasury yields pulled back from session highs as bond traders focused on recent developments in the oil markets. Earlier, the yield of 10-year Treasuries made an attempt to settle above the psychologically important 5.00% level. Treasury yields gained strong upside momentum in recent trading sessions as traders bet that Fed will start the new rate hike cycle at the meeting on Wednesday.
U.S. dollar gained ground against a broad basket of currencies, which was bearish for gold and other precious metals. The American currency moved higher as traders bet on hawkish Fed.
Gold made an attempt to settle below the 50 MA at $4270 but lost mometnum and rebounded above the $4300 level. If gold manages to settle back above the support at $4300 – $4320, it will head towards the $4400 level. A move above $4400 will open the way to the test of the resistance at $4480 – $4500.
Silver Rebounds From Session Lows
Silver has also managed to rebound from session lows as traders monitored dynamics of oil markets. Gold/silver ratio climbed above the 67.50 level, which was bearish for silver.
The nearest resistance level for silver is located in the $65.00 – $66.00 range. If silver manages to settle above the $66.00 level, it will head towards the psychologically important $70.00 level. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
On the support side, silver needs to settle below the $61.00 level to have a chance to gain downside momentum in the near term. In this case, silver will head towards the $57.00 level.
Platinum Tests The $1750 Level
Platinum moved lower amid broad pullback in precious metals markets. Stronger dollar and worries about hawkish Fed put pressure on platinum markets today. Palladium markets were down by -1.00%, which was bearish for platinum.
Currently, platinum is trying to settle below the support level at $1780 – $1800. If platinum manages to settle below the $1780 level, it will head towards the next support, whcih is located in the $1700 – $1720 range.
On the upside, a move above the $1800 level will open the way to the test of the resistance level at $1870 – $1890.
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About the Author
Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.
