Gold Stays Near $4000
Gold remains stuck below the resistance level at $4020 – $4040 as traders focus on stronger dollar and rising Treasury yields.
Treasury yields gained ground as bond traders bet on hawkish Fed. The yield of 2-year Treasuries settled above the 4.22% level, while the yield of 10-year Treasuries moved above 4.60%.
FedWatch Tool indicates that there is a 55% probability that Fed will raise rates by 25 bps in September. The probability of two rate hikes by September is estimated at 9.5%. Hawkish Fed policy outlook is bearish for gold that pays no interest.
U.S. dollar gained ground against a broad basket of currencies as forex traders focused on rising Treasury yields. Stronger dollar is bearish for gold and other dollar-denominated commodities.
Oil prices moved higher as Yemen’s Houthis threatened to impose a naval blockade on Saudi Arabia. Rising oil prices fuel worries about another inflation wave at a time when global oil reserves are at low levels.
The technical picture remains unchanged as gold needs to settle above the resistance level at $4020 – $4040 to have a chance to gain upside momentum in the near term. If gold climbs above the $4040 level, it will head towards the next resistance at $4180 – $4200. A move above the $4200 level will push gold towards the 50 MA at $4277.
On the support side, a move below the $4000 level will open the way to the test of the support level at $3930 – $3950.
Silver Tests Resistance At $56.00 – $57.00
Silver gains gorund as gold/silver ratio pulled back below the 70.50 level. In case gold/silver ratio settles below 70.00, it will head towards the 68.00 level, which will be bullish for silver.
Currently, silver is trying to settle back above the resistance level at $56.00 – $57.00. In case this attempt is successful, silver will move towards the next resistance, which is located in the $61.00 – $62.00 range. 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, a move below the $55.00 level will push silver towards the support level at $51.00 – $52.00.
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See all Gold forecastsPlatinum Is Swinging Between Gains And Losses At The Start Of The Week
Platinum is mostly flat despite rising oil prices and stronger dollar. Palladium markets are up by +1.5%, which is bullish for platinum.
From the technical point of view, platinum attempts to rebound after recent pullback. The nearest resistance level for platinum is located in the $1600 – $1620 range. A successful test of this level will open the way of the test of the next resistance at $1680 – $1700. This resistance level has been tested several times and proved its strength. A move above $1700 will push platinum towards the 50 MA at $1757.
If platinum pulls back below the $1550 level, it will head towards the nearest support at $1500 – $1520. A move below the $1500 level will indicate that platinum markets are ready to gain additional downside momentum.
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