Gold (XAUUSD), Silver, Platinum Forecasts – Gold Remains Stuck Near $4000 As Treasury Yields Rise

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.

Platinum 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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