Gold Tests The $4400 Level
Gold continues to rebound as traders stay bullish despite rising Treasury yields and hawkish Fed policy outlook. FedWatch Tool inidcates that there is a 57.6% probability that Fed will raise rates at the next meeting in October.
The yield of 2-year Treasuries climbed above the 4.73% level, while the yield of 10-year Treasuries tested the psychologically important 5.00% level as bond traders focused on long-term outlook for U.S. interest rates.
I’d note that the yield of 10-year Treasuries has already made several attempts to settle above the key 5.00% level. It remains to be seen whether Bessent’s buybacks will be sufficient to defend this level. A move above 5.00% may trigger another sell-off in bond markets.
Theoretically, higher yields are bearish for gold that pays no interest. However, the current pullback in bond markets is driven by worries about longer-term sustainability of U.S. finances. In this light, a potential sell-off in bond markets may serve as a positive catalyst for gold.
U.S. dollar was mostly flat against a broad basket of currencies as traders reacted to the rate hike from the Bank of Japan. Dollar’s dynamics did not have a material impact on gold markets today.
Currently, gold is trying to settle above the $4400 level. In case this attempt is successful, gold will move towards the next resistance at $4480 – $4500. 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, gold needs to settle below the support level at $4300 – $4320 to have a chance to gain downside momentum in the near term. In this case, gold will head towards the support at $4160 – $4180.
Silver Attempts To Settle Above $66.00
Silver climbed above the $66.00 level as gold/silver ratio pulled back below the 66.00 level. If gold/silver ratio stays below 66.00, it will head towards the 65.00 level, which will be bullish for silver.
In case silver settles above the resistance level at $65.00 – $66.00, it will move towards recent highs near the $68.00 level. A move above $68.00 will push gold towards the $70.00 level. If gold climbs above $70.00, it will get to the test of the next resistance at $71.00 – $72.00.
On the support side, a move below the $65.00 level will push silver towards the 50 MA at $62.97. If gold declines below the 50 MA, it will head towars the support level at $61.00 – $62.00.
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See all Gold forecastsPlatinum Tests Strong Resistance At $1800
Platinum is moving higher amid broad rally in precious metals markets. Palladium markets are up by +2.5%, providing additional support to platinum.
From the technical point of view, platinum is trying to settle above the resistance level at $1780 – $1800. This resistance level has already been tested many times and proved its strength. In case platinum manages to settle above the $1800 level, it will move towards the next resistance level at $1870 – $1890.
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