Gold (XAUUSD), Silver, Platinum Forecasts – Gold Retreats Amid Global Bond Market Sell-Off

Gold Pulls Back As Global Bonds Test New Lows

Gold pulls back as traders focus on the recent sell-off in bond markets. It looks that some funds were forced to sell assets after longer-dated Treasuries and other government bonds tested new lows.

It should be noted that the bond market sell-off is global, so there is nowhere to hide. Traders are worried about long-term financial sustainability of developed economies.

Today, the yield of 10-year bonds of Germany and France tested multi-decade highs. Yesterday, the yield of 30-year Treasuries tested multi-decade highs.

Theoretically, worries about financial sustainability of developed countries are bullish for gold as gold defends capital against devaluation of fiat currencies. However, markets are often driven by technical factors in the near term.

Big moves in bond markets often force fund managers to sell their assets elsewhere to support their positions or cover losses. In this situation, funds may be forced to sell some of their gold holdings.

The technical picture remains unchanged as gold failed to settle above the resistance level at $4360 – $4380. In case gold manages to settle below the $4350 level, it will head towards the $4300 level. A move below $4300 will open the way to the test of the support level at $4180 – $4200.

On the upside, a move above the $4380 level will push gold towards recent highs near the $4430 level. In case gold settles above $4430, it will head towards the resistance level at $4480 – $4500.

Silver Dives As Gold/Silver Ratio Climbs Above 68.00

Silver moved lower as gold/silver ratio climbed above the 68.00 level. In case gold/silver ratio stays above 68.00, it will head towards the 70.00 level, which will be bearish for silver.

Currently, silver is trying to settle below the $64.00 level. In case this attempt is successful, silver will move towards the nearest support level, which is located in the $61.00 – $62.00 range. A successful test of this level will push silver towards the $57.00 level.

On the upside, silver needs to settle above the $66.00 level to have a chance to gain upside momentum in the near term. In this case, silver will head towards the resistance level at $71.00 – $72.00.

Platinum Moves Lower As Demand For Precious Metals Declines

Platinum is losing ground amid broad pullback in precious metals markets. Palladium is down by -2.8%, which is bearish for platinum.

From the technical point of view, platinum failed to settle above the resistance level at $1780 – $1800 and pulled back towards the support level at $1680 – $1700. If platinum settles below the $1680 level, it will head towards the 50 MA at $1653. A move below the 50 MA will push platinum towards the next support, which is located in the $1580 – $1600 range.

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