Gold (XAUUSD), Silver, Platinum Forecasts – Gold Retreats As Iran Attacks UAE

Gold Tests New Lows

Gold is under pressure as traders focus on recent developments in the Middle East.

UAE said that the country was under attack from Iran. The country’s air defense systems intercepted missiles and drones.

An Iranian drone hit an oil facility in the emirate of Fujairah and sparked a fire. At the time of writing, Iran did not comment on attacks.

Earlier, Iran claimed that it attacked a U.S. vessel. U.S. denied Iran’s claims and warned Iran not to attack U.S. assets.

Rising tensions in the Middle East raised demand for safe-haven assets and reduced demand for risk assets. As gold and other precious metals have been trading as risk assets for months, precious metals prices moved lower.

U.S. dollar gained ground against a broad basket of currencies as traders reacted to the strong rally in the oil markets. Brent oil is up by 5% as traders worry that the current ceasefire in the Middle East will not hold. Strong dollar is bearish for gold and other dollar-denominated commodities.

Treasury yields moved higher as bond traders rushed to sell Treasuries amid geopolitical tensions. The yield of 2-year Treasuries managed to settle above the 3.95% level, while the yield of 30-year Treasuries crossed the psychologically important 5.00% level. In case the yield of 30-year Treasuries stays above the 5.00% level in the upcoming trading sessions, bond traders will get worried.

Currently, gold is trying to settle below the support at $4530 – $4550. In case this attempt is successful, gold will move towards the next support level, which is located in the $4350 – $4370 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Silver Retreats As Oil Markets Rally

Silver is losing ground as gold/silver ratio climbed towards the $62.00 level. Falling demand for risk assets put significant pressure on silver markets in today’s trading session.

From the technical point of view, silver attempts to settle below the support level at $71.00 – $72.00. This support level has been tested several times and proved its strength.

In case silver pulls back below the $71.00 level, it will head towards the support at $65.00 – $66.00. A move below the $65.00 level will open the way to the test of the $61.00 level.

Platinum Pulls Back Amid Falling Demand For Precious Metals

Platinum is losing ground amid broad pullback in precious metals markets. Rising oil prices serve as a bearish catalyst for platinum, which is dependent on industrial demand.

Palladium markets are down by 2.8%, putting additional pressure on platinum markets.

The nearest support level for platinum is located in the $1880 – $1900 range. In case platinum declines below the $1880 level, it will head towards the next support level at $1780 – $1800. A successful test of the support at $1780 – $1800 will push platinum towards the $1800 level.

On the upside, platinum needs to settle above the resistance at $2040 – $2060 to gain upside momentum in the near term.

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