Gold (XAUUSD), Silver, Platinum Forecasts – Gold Soars 4% As Traders Bet On Iran Deal

Gold Tests Multi-Week Highs As Traders Focus On Middle East

Gold rallied as traders bet that U.S. and Iran will reach a deal soon. Iran has recently said that it had reached an agreement with Oman. The two countries have chosen routes for shipping through the Strait of Hormuz. The deal would have to be approved by the U.S., which is currently blockading Iranian ports.

Treasury yields moved lower as bond traders reacted to geopolitical developments and bet on a less hawkish Fed. The yield of 2-year Treasuries declined towards the 4.18% level, while the yield of 10-year Treasuries settled near 4.61%. Falling Treasury yields are bullish for gold that pays no interest.

U.S. dollar pulled back as traders focused on the weaker-than-expected ADP Employment Change report. The report showed that private businesses added 44,000 jobs in July, compared to analyst forecast of 70,000. Weaker dollar provided additional support to gold markets in today’s trading session.

Gold climbed above the resistance level at $4180 – $4200 and is trying to settle above the $4250 level. In case gold manages to settle above $4250, it will head towards the next resistance level, which is located in the $4360 – $4380 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the support side, a move below the $4180 level will push gold back towards the strong support at $4020 – $4040.

Silver Tests Key Resistance At $61.00 – $62.00

Silver tests new highs as gold/silver ratio stays below the 68.50 level. If gold/silver ratio declines below the 50 MA at 66.73, it will gain additional downside momentum, which will be bullish for silver.

Currently, silver is trying to settle above the resistance level at $61.00 – $62.00. In case this attempt is successful, silver will get to another test of the 50 MA at $62.65. A move above the 50 MA will open the way to the test of the resistance level at $65.00 – $66.00.

On the support side, silver needs to settle back below the psychologically important $60.00 level to have a chance to gain downside momentum in the near term. In this case, silver will head towards the support level at $56.00 – $57.00.

Platinum Moves Higher As Traders Stay Bullish

Platinum gained ground amid broad rally in precious metals markets. Palladium markets were up by +2%, which was bullish for platinum. Traders bet that lower oil prices will provide support to global economy and boost demand for platinum and palladium.

The nearest resistance level for platinum is located in the $1780 – $1800 range. in case platinum manages to settle above the $1800 level, it will head towards the next resistance, which is located in the $1870 – $1890 range.

On the support side, a successful test of the nearest support level at $1680 – $1700 will open the way to the test of the $1600 level.

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