Gold Tests New Highs As Traders Focus On Bond Yields
Gold rallied as U.S. Treasury announced that it would boost buyback of long-dated bonds. The yield of 10-year Treasuries declined towards the 4.67% level, while the yield of 30-year Treasurries pulled back towards 5.21% as bond traders reacted to the announcement.
By announcing the new buyback, U.S. Treasury indicated that it was not satisfied with current levels in bond markets. This is not surprising as 30-year Treasuries were trading at multi-decade lows.
The decision highlights the bullish thesis for gold: U.S. Treasury has a serious problem and is trying to provide support to the right end of the curve.
U.S. dollar found itself under strong pressure against a broad basket of currencies after the announcement. U.S. dollar’s strong pullback provided additional support to gold markets in today’s trading session.
Currently, gold is trying to settle above the resistance level at $4480 – $4500. In case gold manages to settle above the psychologically important $4500 level, it will head towards the next resistance level, which is located in the $4630 – $4650 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in the near term.
On the support side, a move below the $4450 level will push gold back towards the nearest support at $4360 – $4380.
Silver Attempts To Settle Back Above The $66.00 Level
Silver climbed back towards the $66.00 level as gold/silver ratio pulled back towards 68.00. If gold/silver ratio settles back below the 50 MA at 67.94, it will head towards the 66.00 level, which will be bullish for silver.
From the technical point of view, silver rebounded towards the key resistance level at $65.00 – $66.00. This resistance level has been tested many times and proved its strength. If silver manages to settle above $66.00, it will head towards the next resistance at $71.00 – $72.00.
On the support side, a move below the $64.00 level will open the way to the test of the support at $61.00 – $62.00. If silver declines below the $61.00 level, it will move towards the psychologically important $60.00 level.
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See all Gold forecastsPlatinum Tests Resistance At $1780 – $1800
Platinum gained strong upside momentum amid rising demand for precious metals. Palladium markets were up by more than 5%, which was bullish for platinum.
Traders ignored rising oil prices and focused on the buyback of U.S. government debt.
Platinum failed to settle below the support level at $1680 – $1700 and rallied towards the resistance level at $1780 – $1800. Platinum has recently made several attempts to settle above the $1800 level, but these attempts yielded no results. If platinum manages to settle above $1800, it will head towards the resistance level at $1870 – $1890.
A move above the $1890 level will push platinum towards the $1950 level. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
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