Gold (XAUUSD), Silver, Platinum Forecasts – Gold Tests Multi-Month Highs

Gold Tests New Highs As Traders Stay Bullish Ahead Of The Weekend

Gold rallies as traders stay focused on Treasury’s recent decision to boost buybacks of long-dated bonds. Put simply, traders buy gold to protect their portfolios from the “printing press”.

Interestingly, Treasury yields are moving higher as bond traders bet that high oil prices will force the Fed to be more hawkish. The yield of 2-year Treasuries climbed above the 4.23% level, while the yield of 10-year Treasuries settled above 4.73%.

Oil prices gained more than 1% amid rising tensions in the Middle East. The U.S. will unveil its plan for economic isolation of Iran next Monday. Traders bet that the Strait of Hormuz would be closed for weeks. High oil prices will push inflation towards higher levels, forcing the Fed to be more hawkish.

That said, FedWatch Tool indicates that there is a 61.6% probability that Fed will keep rates unchanged at the next meeting in September. The probability of a rate hike has significantly declined in recent weeks, which was bullish for gold markets. Traders should note that markets expect that Fed will make at least one rate hike by the end of this year.

U.S. dollar was swinging between gains and losses against a broad basket of currencies today, which was neutral for gold.

Currently, gold is trying to settle above the resistance level at $4630 – $4650. In case this attempt is successful, gold will head towards the next resistance, which is located in the $4780 – $4800 range.

On the support side, a move below the $4600 level will push gold towards the nearest support at $4480 – $4500. It should be noted that RSI has moved into overbought territory, so the risks of a pullback are rising.

Silver Attempts To Settle Above The $70.00 Level

Silver gained ground as gold/silver ratio was mostly flat near the 66.50 level. A move below the 66.00 level will push gold/silver ratio towards 64.00, which will be bullish for silver.

The nearest resistance level for silver is located in the $71.00 – $72.00 range. In case silver climbs above the $72.00 level, it will head towards the next resistance at $77.00 – $78.00. RSI remains 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 $68.00 level will open the way to the test of the support at $65.00 – $66.00.

Platinum Tests Resistance At $1870 – $1890

Platinum rallied as demand for precious metals increased. Palladium markets were up by +1%, providing additional support to platinum.

From the technical point of view, platinum is trying to settle above the resistance level at $1870 – $1890. If platinum manages to settle above the $1890 level, it will head towards the next resistance at $1950 – $1970. A move above $1970 will push platinum towards the psychologically important $2000 level.

On the support side, a move below $1850 will open the way to the test of the nearest support level at $1780 – $1800.

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