Gold (XAUUSD), Silver, Platinum Forecasts – Gold Retreats Amid Geopolitical Uncertainty

Gold Tests Support At $4660 – $4680

Gold is losing ground as traders focus on the rally in the oil markets and react to rising Treasury yields.

WTI oil climbed above the $96.00 level, while Brent oil rallied above $108.00 amid no signs of progress in U.S. – Iran negotiations. The stalemate in the negotiation process provides material support to oil markets, which is bearish for gold.

Treasury yields moved higher as bond traders have started to prepare for Fed decision, which will released on Wednesday. The yield of 2-year Treasuries moved above the 3.81% level, putting additional pressure on gold markets. Rising yields are bearish for gold and other precious metals that pay no interest.

U.S. dollar is losing some ground against a broad basket of currencies, but this move does not provide material support to gold markets.

Gold continues its attempts to settle below the support level at $4660 – $4680. In case gold settles below the $4660 level, it will move towards the next support, which is located in the $4530 – $4550 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the upside, gold needs to settle back above the $4750 level to gain sustainable upside momentum. A move above the $4750 level will push gold towards the resistance level at $4860 – $4880.

Silver Moves Lower As Demand For Precious Metals Declines

Silver pulled back as gold/silver ratio remained stuck near the 62.00 level. If gold/silver ratio stays above the 50 MA at 62.00, it will move towards the 65.00 level, which will be bearish for silver.

From the technical point of view, silver continues its attempts to settle below the $75.00 level. If silver manages to settle below $75.00, it will head towards the nearest support, which is located in the $71.00 – $72.00 range. A move below $71.00 will push silver towards the $65.50 level.

On the upside, silver needs to settle above the resistance at $78.00 – $79.00 to gain momentum. In case silver climbs above $78.00, it will head towards the resistance at $84.00 – $85.00.

Platinum Is Losing Ground As Traders Focus On Rising Oil Prices

Platinum is moving lower amid broad pullback in precious metals markets. Traders worry that high oil prices will hurt global economy and reduce demand for platinum, which is dependent on industrial demand. Palladium markets are down by -1.3%, putting additional pressure on platinum.

At this point, platinum markets need additional positive catalysts to move higher. Traders are waiting for encouraging geopolitical developments, although it remains to be seen whether U.S. and Iran will be able to reach a deal in the near term. In case the Strait of Hormuz remains de-facto closed in the upcoming weeks, platinum prices may test new lows.

Platinum settled below the psychologically important $2000 level and is moving towards the $1950 level. If platinum settles below $1950, it will head towards the support level at $1880 – $1900. A successful test of the support at $1880 – $1900 will open the way to the test of the $1800 level.

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