Gold (XAUUSD), Silver, Platinum Forecasts – Gold Retreats As Dollar Tests New Highs

Gold Tests Support At $5100 – $5120

Gold is losing ground as traders focus on strong dollar, rising Treasury yields, and the rally in the oil markets.

U.S. dollar gained ground as traders bet that Fed would be more hawkish than previously expected due to high energy prices. U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, tested multi-month highs. Strong dollar is bearish for dollar-denominated commodities.

Treasury yields gained ground as bond traders expected that Fed will keep rates unchanged at the upcoming meetings. High oil prices will likely push inflation higher, so the central bank will not be able to cut rates. Higher yields are bearish for gold that pays no interest.

Demand for safe-haven assets increased as traders reacted to geopolitical developments. Iran’s new Supreme Leader delivered a hawkish speech and said that the war would be opened in other fronts. Interestingly, Khamenei did not appear in public, and the text was read by a news anchor.

Anyway, markets prepare for a lengthy war and a period of high oil prices. Gold did not benefit from rising demand for safe-haven assets as the market attracted speculative traders in recent months. These traders are sensitive to changes in global market sentiment and are often forced to close positions due to margin requirements.

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

On the upside, gold needs to climb above the $5200 level to gain sustainable upside momentum in the near term. In this case, gold will head towards the nearest resistance at $5430 – $5450.

Silver Retreats As Oil Prices Rise

Silver moved lower as traders reacted to the rally in the oil markets and focused on the pullback in gold markets.

Gold/silver ratio declined towards the 60.00 level, which was bullish for silver. However, this move was not sufficient to push silver prices higher.

In case silver stays below the resistance level at $86.00 – $87.00, it will move towards the support, which is located in the $78.00 – $79.00 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

Platinum Moves Lower Amid Falling Demand For Precious Metals

Platinum prices declined amid broad pullback in precious metals markets, which was triggered by strong dollar and falling appetite for risk. Palladium markets were mostly flat in choppy trading as traders showed little reaction to strong dollar and geopolitical news.

It remains to be seen whether volatility will decline in the upcoming trading sessions as rising oil prices may put significant pressure on platinum markets. High oil prices could deliver a significant blow to the global economy and reduce demand for platinum.

From the technical point of view, platinum is trying to settle below the $2150 level. In case this attempt is successful, platinum will head towards the nearest support, which is located in the $2040 – $2060 range. A move below the $2040 level will provide platinum with an opportunity to gain additional downside momentum.

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