Gold (XAUUSD), Silver, Platinum Forecasts – Gold Remains Under Pressure As Dollar Tests New Highs

Gold Tests New Lows As Pullback Continues

Gold is losing ground as traders focus on U.S. dollar’s strong rally. U.S. dollar gained ground against a broad basket of currencies as traders reacted to the better-than-expected Composite PMI report. Forex traders bet that Fed will raise rates to fight inflation as the U.S. economy stays strong and does not need additional support from the central bank.

Treasury yields moved lower, but this move did not provide support to gold markets. The yield of 2-year Treasuries declined below the 4.20% level, while the yield of 10-year Treasuries settled below the psychologically important 4.50% level. Treasury yields pulled back as traders rushed to buy bonds amid sell-off in U.S. equity markets.

Falling yields did not provide support to gold as today’s action did not change the hawkish Fed policy outlook. In the longer-term, rising interest rates serve as a bearish catalyst for gold and other precious metals that pay no interest.

Gold settled below the support at $4180 – $4200 and is trying to settle below the $4100 level. In case this attempt is successful, gold will head towards the next support, which is located in the $4020 – $4040 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.

On the upside, gold needs to settle back above the $4200 level to have a chance to gain sustainable upside momentum in the near term. In case gold climbs above $4200, it will head towards the next resistance level at $4370 – $4390.

Silver Retreats As Gold/Silver Ratio Tests Multi-Week Highs

Silver is under strong pressure as gold/silver ratio jumped above the 66.50 level. In case gold/silver ratio stays above 66.50, it will head towards the 68.50 level, which will be bearish for silver.

Currently, silver is trying to settle below the key support at $61.00 – $62.00. This support level has been tested several times and proved its strength. In case silver settles below the $61.00 level, it will move towards the next support at $56.00 – $57.00.

On the upside, a move above the $62.00 level will open the way to the test of the resistance level at $65.00 – $66.00.

Platinum Attempts To Settle Below The $1600 Level

Platinum moved lower amid broad pullback in precious metals markets. Palladium markets were down by -2.6%, which was bearish for platinum.

Falling oil prices did not provide support to platinum and palladium in today’s trading session. It looks that traders believe that damage has been done, and the strong pullback in the oil markets does not change the outlook. Central banks will be forced to raise rates to fight inflation, which will hurt economic growth and reduce demand for platinum.

The nearest resistance level for platinum is located in the $1600 – $1620 range. A successful test of this level will push platinum towards the next resistance at $1500 – $1520.

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