Gold (XAUUSD), Silver, Platinum Forecasts – Gold Remains Stuck Near $5000

Gold Is Mostly Flat Despite Weaker Dollar

Gold settled near the psychologically important $5000 level as traders reacted to U.S. dollar’s pullback and focused on recent developments in the Middle East.

U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, pulled back towards the 99.60 level as traders reacted to falling Treasury yields. Weaker dollar is bullish for dollar-denominated commodities, including gold.

Israel reported that Iran’s top security chief Larijani was killed. Meanwhile, European leaders declined to join U.S. and Israel in their operation against Iran.

The Strait of Hormuz remains closed, and only selected vessels are able to get through the world’s key oil route. Oil prices are moving higher, which means that demand for safe-haven assets may increase. However, U.S. equity markets managed to gain some ground today, indicating that investors’ appetite for risk was rising.

It looks that gold traders are waiting for additional catalysts. Gold did not act as a safe-haven asset during the conflict in the Middle East as the market has previously attracted leveraged players who were forced to de-leverage amid volatility in global markets.

In case gold settles below the $5000 level, it will move towards the 50 MA at $4967. A successful test of the 50 MA will open the way to the test of the support level, which is located in the $4880 – $4900 range.

On the upside, the nearest resistance level for gold is located in the $5100 – $5120 range. If gold climbs above the $5120 level, it will head towards the next resistance level at $5430 – $5450.

Silver Tests Support At $78.00 – $79.00

Silver pulled back as gold/silver ratio climbed towards the 63.00 level. If gold/silver ratio settles above 63.00, it will head towards March highs near the 65.00 level, which will be bearish for silver.

From the technical point of view, silver continues its attempts to settle below the nearest support at $78.00 – $79.00. This support level has already been tested several times and proved its strength.

In case silver manages to settle below the $78.00 level, it will head towards the next support, which is located in the $71.00 – $72.00 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

On the upside, silver needs to climb back above the psychologically important $80.00 level to gain upside momentum in the near term. In this case, silver will head towards the resistance level at $86.00 – $87.00.

Platinum Rebounds Above The $2100 Level

Platinum continued to move higher as traders focused on weaker dollar and falling Treasury yields. Palladium markets were up by roughly 0.5%, providing additional support to platinum prices.

Platinum has recently made an attempt to settle below the support level at $2040 – $2060, but failed to develop sufficient downside momentum and rebounded above the $2100 level.

If platinum settles above $2100, it will head towards the nearest resistance level, which is located in the $2245 – $2265 range.

On the support side, a successful test of the support at $2040 – $2060 will open the way to the test of the next support level at $1880 – $1900.

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