Gold (XAUUSD), Silver, Platinum Forecasts – Gold Retreats As Treasury Yields Test New Highs

Gold Tests Support At $4530 – $4550

Gold tested new lows as traders focused on stronger dollar and rising Treasury yields.

Treasury yields rallied as bond traders bet that Fed will be forced to raise rates to fight inflation. The yield of 2-year Treasuries climbed above the 4.10% level, while the yield of 10-year Treasuries settled above 4.65%.

Importantly, the yield of 30-year Treasuries made an attempt to settle above the 5.20% level. The rally in long-term yields shows that investors are worried about the long-term inflation outlook.

It should be noted that European debt markets have also suffered a sell-off today. The yields in Japan tested multi-decade highs. The bond market sentiment is nervous, and it looks that some traders are forced to sell their positions in other markets to cover losses.

Rising yields raised demand for safe-haven assets, which was bullish for the U.S. dollar. Strong dollar is bearish for gold and other dollar-denominated commodities as it makes them more expensive for buyers who have other currencies.

Brent oil prices gained some ground as traders prepared for the potential restart of the military operation against Iran. President Trump warned Iran that he would resume strikes in case the country does not agree to a deal. Rising geopolitical tensions reduced demand for risk assets, which was bearish for gold.

From the technical point of view, gold continues its attempts to settle below the support level at $4530 – $4550. In case gold manages to settle below the $4530 level, it will move towards the next support, which is located in the $4350 – $4370 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

Silver Tests New Lows

Silver is losing ground as gold/silver ratio climbed back above the 60.00 level. In case gold/silver ratio settles above the 50 MA at 61.63, it will head towards the 65.00 level, which will be bearish for silver.

If silver stays below the $75.00 level, it will head towards the nearest support, which is located in the $71.00 – $72.00 range. A move below the $71.00 level will push silver towards the $65.00 level.

On the upside, silver needs to settle back above the resistance level at $78.00 – $79.00 to gain upside momentum in the near term. In this scenario, silver will move towards the next resistance at $85.00 – $86.00.

Platinum Pulls Back Amid Rising Geopolitical Tensions

Platinum is under pressure amid broad pullback in precious metals markets. High oil prices may deal a significant blow to economic growth and reduce demand for commodities, including platinum. Palladium markets are down by -4.3%, putting additional pressure on platinum.

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 at $1785 – $1800. A move below the $1785 level will open the way to the test of the next support, which is located at March lows near the $1700 level.

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