Gold (XAUUSD), Silver, Platinum Forecasts – Gold Retreats As Traders Reduce Bets On Dovish Fed

Gold Pulls Back As PCE Price Index Exceeds Estimates

Gold is losing ground as traders react to PCE Price Index report from the U.S. The report indicated that PCE Price index remained unchanged at 3.7% in July, compared to analyst consensus of 3.6%.

Higher-than-expected PCE Price Index report raised worries about potential rate hikes from the Fed. FedWatch Tool indicates that the probability of a rate hike in October is 54.7%. The market does not believe that Fed will raise the federal funds rate at the next meeting in September. Hawkish changes in Fed policy outlook are bearish for gold that pays no interest.

Not surprisingly, Treasury yields moved higher as bond traders reacted to PCE data. The yield of 2-year Treasuries moved above the 4.22% level, while the yield of 10-year Treasuries settled above 4.66%.

U.S. dollar gained ground against a broad basket of currencies as traders reduced bets on dovish Fed. Stronger dollar put additional pressure on gold and other precious metals.

Gold failed to settle above the resistance level at $4630 – $4650 and pulled back towards the $4600 level. In case gold settles below $4600, it will head towards the support level at $4480 – $4500.

On the upside, gold needs to settle above the $4650 level to have a chance to gain upside momentum in the near term. In this case, gold will head towards the resistance level at $4780 – $4800.

Silver Moves Lower As Treasury Yields Rise

Silver pulled back as traders focused on PCE data and reacted to the pullback in gold markets. Gold/silver ratio pulled back towards the 67.50 level, providing some support to silver prices in today’s trading session.

Currently, silver is trying to settle below the $68.00 level. In case this attempt is successful, silver will head towards the nearest support level, which is located in the $65.00 – $66.00 range. A move below the $65.00 level will open the way to the test of the next support at $61.00 – $62.00. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the upside, a move above the $70.00 level will push silver towards the resistance at $71.00 – $72.00. A successful test of this level will push silver towards the $78.00 level.

Platinum Attempts To Settle Below $1850

Platinum moved lower amid broad pullback in precious metals markets. Strong dollar and rising Treasury yields put significant pressure on platinum prices today. Palladium markets were down by -0.7%, which was bearish for platinum.

The nearest support level for platinum is located in the $1780 – $1800 range. If platinum manages to settle below the $1780 level, it will head towards the next support at $1700 – $1720. A move below the $1700 level will push platinum towards the 50 MA at $1667.

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