Gold (XAUUSD), Silver, Platinum Forecasts – Gold Retreats As Dollar Tests Multi-Month Highs

Gold Pulls Back As Dollar Moves Higher

Gold is losing ground as traders focus on the war in the Middle East and strong dollar.

U.S. dollar tested new highs against a broad basket of currencies as traders reacted to the better-than-expected JOLTs Job Openings report. Rising geopolitical tensions provided additional support to the American currency as demand for safe-haven assets increased.

Gold has not served as a safe-haven asset in recent trading sessions. Traders are not ready to boost purchases of gold after the strong multi-month rally. It looks that speculative traders are forced to sell, while long-term investors are waiting for a pullback to buy gold at attractive levels.

It should be noted that Treasury yields continued to move higher, which was bearish for gold and other precious metals. Brent oil prices have already moved above the $100 level as the war in the Middle East continues and Iran strikes oil-related facilities in nearby countries.

Bond traders believe that Fed will not be able to cut rates as inflation will start to rise due to high energy prices. High yields are bearish for gold that pays no interest.

Currently, gold is trying to settle below the support level at $5100 – $5120. In case this attempt is successful, gold will head towards the next support, which is located in the $4880 – $4900 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 support level at $5100 – $5120 to gain momentum in the near term.

Silver Dives As Gold/Silver Ratio Jumps Above 62

Silver is losing ground as gold/silver ratio jumped above the 62.00 level. From the technical point of view, gold/silver ratio has recently made several attempts to settle below the 50 MA at 57.45 but failed to develop sufficient downside momentum.

In case gold/silver ratio climbs above the 64.00 level, it will move towards the 68.00 level, which will be bearish for silver.

Silver is sensitive to fluctuations of the appetite for risk, so the continuation of the war in the Middle East is a bearish catalyst for silver markets.

Silver is moving towards the nearest support level, which is located in the $78.00 – $79.00. A successful test of this level will push silver towrds the next support at $71.00 – $72.00.

On the upside, silver must climb above the resistance level at $86.00 – $87.00 to have a chance to gain sustainable upside momentum. In this scenario, silver will head towards February highs near the $96.00 level.

Platinum Tests Support At $2040 – $2060

Platinum is under pressure amid broad pullback in precious metals markets. Traders focus on strong dollar and worry that high oil prices will hurt the global economy and reduce demand for platinum. Palladium markets are down by 3.4%, which is bearish for platinum.

The nearest support level for platinum is located in the $2040 – $2060 range. In case platinum settles below the $2040 level, it will move towards the support level, which is located in the $1880 – $1900 range. RSI is in the moderate territory, so there is enough room to gain momentum in case the right catalysts emerge.

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