Gold Pulls Back As Treasury Yields Rise
Gold is losing ground as traders focus on rising Treasury yields and react to inflation data from Germany.
The yield of 10-year Treasuries climbed towards the 4.89% level, while the yield of 30-year Treasuries settled above the 5.64% mark. The sell-off in U.S. bond market continues despite Bessent’s buybacks.
Interestingly, the probability of a rate hike at the next meeting in October declined to 39.3% as traders reacted to the pullback in the oil markets. However, Treasury yields keep moving higher, putting pressure on gold that pays no interest.
Germany’s Inflation Rate increased from 2.9% in August to 3.3% in September, compared to analyst consensus of 3.2%. Fuel costs were the key driver for rising inflation in Germany. Analysts expect that ECB will be forced to raise rates to fight inflation. ECB’s policy outlook is also important for gold markets, although it has a smaller impact compared to Fed policy outlook.
U.S. dollar was mostly flat against a broad basket of currencies today, which was neutral for gold markets.
Gold made an attempt to settle above the $4200 level but lost momentum and pulled back below the support at $4160 – $4180. In case gold settles below the $4160 level, it will head towards the next support, which is located in the $4000 – $4020 range.
On the upside, a move above the $4200 level will push gold towards the resistance level at $4300 – $4320.
Silver Declines As Gold/Silver Ratio Tests New Highs
Silver is moving lower as gold/silver ratio climbed above the 69.00 level. In case gold/silver ratio stays above 69.00, it will head towards the psychologically important 70.00 level, which will be bearish for silver.
Currently, silver is trying to settle below the resistance level at $61.00 – $62.00. In case this attempt is successful, silver will head towards the next resistance at $56.00 – $57.00. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
On the upside, a move above the $62.00 level will push silver towards the 50 MA at $63.91. If silver manages to settle above the 50 MA, it will head towards the resistance level at $65.00 – $66.00.
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See all Gold forecastsPlatinum Moves Lower As Pullback Continues
Platinum remains under pressure amid broad pullback in precious metals markets. Palladium markets are down by -1.6%, which is bearish for platinum.
From the technical point of view, platinum continues its attempts to settle below the support level at $1700 – $1720. If platinum manages to settle below the $1720 level, it will head towards the next support, which is located in the $1600 – $1620 range.
On the upside, platinum needs to settle back above the $1720 level to have a chance to gain upside momentum in the near term. In this case, platinum will head towards the 50 MA at $1752. If platinum climbs above the 50 MA, it will head towards the resistance level at $1780 – $1800.
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