Gold (XAUUSD), Silver, Platinum Forecasts – Gold Retreats As Traders Focus On Rate Outlook

Gold Retreats As Traders Ignore Dollar’s Pullback

Gold is losing ground as traders worry about longer-term Fed policy outlook. FedWatch Tool indicates that there is a 49.3% probability that Fed will raise rates by 25 bps in September.

U.S. dollar pulled back against a broad basket of currencies as traders continued to take profits near yearly highs. Interestingly, this pullback did not provide any support to gold markets. Gold traders focus on upcoming rate hikes and worry that rising interest rates will reduce demand for gold.

The yield of 2-year Treasuries climbed above the 4.11% level as bond traders focused on hawkish Fed policy outlook. The yield of 10-year Treasuries was mostly flat near 4.37%. Rising shorter-term yields put additional pressure on gold markets in today’s trading session.

Currently, gold is trying to settle below the support at $4020 – $4040. In case this attempt is successful, gold will move towards the next support level, which is located in the $3880 – $3900 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the upside, silver needs to settle above the $4100 level to have a chance to gain upside momentum in the near term. In this case, silver will move towards the resistance level at $4180 – $4200.

Silver Tests The $58.00 Level

Silver is losing ground as traders focus on the strong pullback in gold marekts. Gold/silver ratio settled above the 69.00 level, putting additional pressure on silver. In case gold/silver ratio stays above 69.00, it will head towards recent highs near the 71.50 level, which will be bearish for silver.

The nearest support level for silver is located in the $56.00 – $57.00 range. If silver declines below the $56.00 level, it will head towards the next support level at $51.00 – $52.00. RSI has recently moved out of the oversold territory, so there is enough room to gain additional downside momentum in the near term.

On the upside, the nearest resistance level for silver is located in the $61.00 – $62.00. A successful test of the resistance at $61.00 – $62.00 will open the way to the test of the $65.00 level.

Platinum Is Under Strong Pressure At The Start Of The Week

Platinum is moving lower as traders react to the rebound in the oil markets. Brent oil climbed above the $73.00 level as traders focused on developments in the Middle East. U.S. and Iran halted attacks after a new round of escalation over the weekend. Rising oil prices are bearish for platinum, which is dependent on industrial demand. Platinum markets were up by +0.7%, but this move did not provide any support to platinum.

Platinum failed to settle above the resistance level at $1600 – $1620 and pulled back towards the $1570 level. In case platinum declines below $1550, it will head towards the support level at $1500 – $1520.

On the upside, a move above the resistance at $1600 – $1620 will open the way to the test of the next resistance level at $1680 – $1700.

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