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

Gold Pulls Back As Treasury Yields Rise

Gold is losing ground as traders focus on rising tensions in the Middle East. U.S. and Iran exchanged military strikes again. Israel and Hezbollah have also attacked each other, although the intensity of fighting has been reduced.

Oil prices rallied as traders focused on developments in the Middle East. WTI oil gained 3.2%, while Brent oil was up by 2.5%. Rising oil prices reduced demand for risk assets, which was bearish for gold.

Treasury yields moved higher as traders reacted to high oil prices. The yield of 2-year Treasuries climbed towards the 4.09% level, while the yield of 10-year Treasuries settled near 4.50%. Rising Treasury yields put additional pressure on gold that pays no interest.

U.S. dollar gained ground against a broad basket of currencies amid rising demand for safe-haven assets. Strong dollar puts pressure on dollar-denominated commodities as it makes them more expensive for buyers who have other currencies.

From a big picture point of view, gold traders are worried that high oil prices will force global central banks to start the rate hike cycle. At this point, the start of this cycle looks inevitable. The situation in the Strait of Hormuz may not be solved in the near term, while its longer-term consuequences will fuel inflationary pressure for months to come.

Currently, gold is trying to settle below the $4450 level. In case this attempt is successful, gold will head towards the next support, which is located in the $4350 – $4370 range.

On the upside, gold needs to settle above the resistance at $4530 – $4550 to have a chance to gain upside momentum in the near term. If gold climbs above the $4550 level, it will head towards the 50 MA at $4629.

Silver Moves Lower As The Appetite For Risk Declines

Silver pulls back as gold/silver ratio climbed back above the 60 level. In case gold/silver ratio settles above the 50 MA at 60.92, it will move towards the 65 level, which will be bearish for silver.

From the technical point of view, silver failed to settle above the 50 MA at $76.11 and pulled back towards the $73.00 level. In case silver settles below $73.00, it will move towards the support at $71.00 – $72.00. A successful test of the support at $71.00 – $72.00 will open the way to the test of the next support at $65.00 – $66.00.

On the upside, a move above the 50 MA at $76.11 will push silver towards the resistance level at $78.00 – $79.00.

Platinum Attempts To Settle Below $1850

Platinum is under pressure amid broad sell-off in precious metals markets. Palladium markets are down by -4.3%, which is bearish for platinum.

Currently, platinum is trying to settle below the support level at $1880 – $1900. A successful test of this level will open the way to the test of the next support at $1780 – $1800. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

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