Gold (XAUUSD), Silver, Platinum Forecasts – Gold Tested The $5100 Level Despite Rising Treasury Yields

Gold Attempts To Settle Above The $5100 Level

Gold gained ground as traders reacted to U.S. job market data and ignored rising Treasury yields. The yield of 2-year Treasuries jumped towards the 3.50% level, while the yield of 10-year Treasuries settled above 4.15%.

Treasury yields moved higher as Non Farm Payrolls report showed that U.S. economy added 130,000 jobs in January, exceeding analyst estimates.

U.S. Unemployment Rate decreased from 4.4% in December to 4.3% in January, compared to analyst forecast of 4.4%.

The better-than-expected job market data triggered a pullback in Treasuries, pushing their yields higher. Bond traders cut their bets on dovish Fed as the reports indicated that economy remained in decent shape.

Typically, higher yields are bearish for gold markets as gold pays no interest. However, traders ignored yields and focused on other catalysts amid volatility in precious metals markets.

It looks that gold markets have stabilized after the strong pullback from historic highs and could be ready to gain sustainable upside momentum.

In case the market has gone through the process of deleveraging, there’ll be less “weak hands” to sell at any pullback, making the upside trend stronger.

The fundamental thesis for gold remains intact as central banks continue to purchase gold for their reserves amid rising geopolitical risks. The challenging geopolitical situation makes central banks less sensitive to prices, which is bullish for gold markets.

Gold settled above the $5000 level and moved towards the nearest resistance level, which is located in the $5100 – $5120 range. In case gold manages to settle above the $5120 level, it will move towards the next resistance at $5430 – $5450. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

Silver Gains Ground As Gold/Silver Ratio Drops To 60

Silver rallied as rebound continued. From a big picture point of view, traders rush to buy silver after the strong pullback.

Silver did not settle below the support at $78.00 – $79.00, so bulls gained more confidence and are ready to push prices higher.

Gold/silver ratio has started to move lower after the strong rebound from multi-year lows. Currently, gold/silver ratio is trying to settle below the 60.00 level. In case this attempt is successful, gold/silver ratio will head towards the 55.00 level, which will be bullish for silver.

The nearest resistance level for silver is located in the $87.00 – $88.00 range. In case silver climbs above the $88.00 level, it will head towards the next resistance at $95.00 – $96.00. On the support side, a move below the $78.00 level will provide silver with an opportunity to gain downside momentum. In this scenario, silver will head towards the $71.00 level.

Platinum Tests The $2150 Level

Platinum gained upside momentum amid rising demand for precious metals. Bulls have started to return after a period of strong volatility in platinum markets.

Palladium have also managed to move higher and made an attempt to settle above the $1750 level, which was bullish for platinum.

From the technical point of view, platinum is trying to settle above the 50 MA at $2143. If platinum manages to settle above the 50 MA, it will move towards the nearest resistance level, which is located in the $2245 – $2265 range. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

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