Gold (XAUUSD), Silver, Platinum Forecasts – Gold Retreats Amid Rising Treasury Yields

Gold Pulls Back As Geopolitical Tensions Rise

Gold is losing ground as traders focus on developments in the Middle East. Iran said that it would suspend negotiations with the U.S. as Israel continued its operation against Hezbollah in Lebanon.

Iran also noted that it could initiate a complete closure of the Strait of Hormuz. Brent oil rallied 5% as traders reacted to Iran’s decision.

President Trump said that the U.S. will continue the naval blockade of Iran. He reportedly added that it did not mean that U.S. would “start dropping bombs all over there.”

Rising geopoplitical tensions put pressure on gold, which continues to trade as a risk asset.

Treasury yields gained ground as bond traders focused on rising oil prices, which could force the Fed to raise rates in order to fight inflation. The yield of 2-year Treasuries climbed towards the 4.06% level, while the yield of 10-year Treasureis settled near 4.48%. Higher yields put pressure on gold that pays no interest.

U.S. dollar gained ground against a broad basket of currencies as demand for safe-haven assets increased. Stronger dollar put additional pressure on gold markets in today’s trading session.

Gold failed to settle above the resistance level at $4530 – $4550 and made an attempt to settle below the $4450 level. In case gold settles below $4450, it will head towards the nearest support, which is located in the $4350 – $4370 range.

On the upside, gold needs to settle back above the resistance at $4530 – $4550 to gain upside momentum in the near term. A move above the $4550 level will push gold towards the 50 MA at $4628. If gold climbs above the 50 MA, it will head towards the resistance at $4660 – $4680.

Silver Remains Stuck Near The $75.00 Level

Silver settled near the $75.00 level as gold/silver ratio pulled back below the 60.00 level. Gold/silver ratio failed to settle above the 50 MA at 61.03, which was an encouraging development for the bulls.

In case silver manages to settle above the 50 MA at $75.95, it will head towards the nearest resistance level at $78.00 – $79.00. A successful test of this level will open the way to the test of the next resistance at $85.00 – $86.00.

On the support side, a move below the $74.00 level will push silver towards the nearest support at $71.00 – $72.00. A move below the $71.00 level will signal that silver is ready to gain additional downside momentum.

Platinum Moves Higher As Traders Ignore Rising Oil Prices

Platinum gained some ground despite the strong rally in the oil markets. Palladium markets were up by +1.1%, which was bullish for platinum.

From the technical point of view, platinum settled above the support level at $1880 – $1900. A move below the $1880 level will provide platinum with an opportunity to gain strong downside momentum. In this scenario, platinum will head towards the next support at $1780 – $1800.

On the upside, a move above the 50 MA at $1978 will push platinum towards the resistance level at $2040 – $2060. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

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