Gold (XAUUSD), Silver, Platinum Forecasts – Gold Tests New Highs As Traders Stay Focused On Bond Buyback Plan

Gold Gains Ground As Rally Continues

Gold tests new highs as traders focus on Bessent’s plans to buy back long-dated Treasuries in order to push their yields lower.

According to recent reports, the Treasury could use the $950 trillion General Account to fund the buyback plans. The Treasury General Account (TGA) would provide Bessent with sufficient firepower to impact yields. The goal of the operation is to push long-dated yields towards lower levels.

Currently, the yield of 10-year Treasuries settled near 4.69% level, while the yield of 30-year Treasuries pulled back towards 5.22%. Many analysts believe that Bessent will try to push the yield of 30-year Treasuries towards the 5.00% level.

The Treasury buyback plan solidifies the bullish case for gold, so it’s not surprising to see that traders stay bullish.

Taking a look at the near-term Fed policy outlook, FedWatch tool indicates that there is a 57.9% probability that Fed will keep rates unchanged at the next meeting in September. Interestingly, traders believe that Fed will start the rate hike cycle in October, raising the federal funds rate by 25 bps.

U.S. dollar gained ground against a broad basket of currencies despite falling Treasury yields. Dollar’s rebound did not put pressure on gold markets as traders remained focused on the bond buyback program.

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. It should be noted that RSI is in the overbought territory, so the risks of a pullback are increasing.

Silver Moves Lower Amid Profit-Taking

Silver is losing some ground as traders take some profits off the table after the strong rally. Gold/silver ratio rebounded above the 67.50 level, which was bearish for silver.

In case silver settles back below the $68.00 level, it will head towards the nearest resistance, which is located in the $65.00 – $66.00 range. A move below the $65.00 level will push silver towards the 50 MA at $61.33.

On the upside, silver needs to settle above the resistance level at $71.00 – $72.00 to have a chance to gain additional upside momentum in the near term. If silver climbs above the $72.00 level, it will head towards the next resistance at $77.00 – $78.00.

Platinum Tested The $1900 Level

Platinum moved away from recent highs amid profit-taking. The pullback in the oil markets did not provide support to platinum markets in today’s trading session. Palladium prices were up by +1%, which was bullish for platinum.

From the technical point of view, platinum continues its attempts to settle above the resistance level at $1870 – $1890. If platinum climbs above the $1890 level, it will head towards the next resistance level at $1950 – $1970.

On the support side, a move below the $1850 level will push platinum towards the nearest support level, which is located in the $1780 – $1800 range. A move below $1780 will open the way to the test of the $1700 level.

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