Gold (XAUUSD), Silver, Platinum Forecasts – Gold Tests New Lows As Oil Rallies

Gold Retreats Amid Lack Of Progress In Middle East Negotiations

Gold is losing ground as traders focus on the strong rally in the oil markets. U.S. – Iran negotiations stalled, and oil traders do not believe that the Strait of Hormuz would be reopened in the near term.

Rising oil prices are bearish for gold as they reduce demand for riskier assets. Gold, which is a traditional safe-haven asset, has traded as a riskier asset for months after the strong rally attracted speculative players.

It looks that some central banks have started to sell gold to protect their economies from the oil price shock. At such times, central banks may also sell gold to provide support to local currencies. In case central banks are forced to sell more gold due to weakness of local currencies, gold markets may find themselves under significant pressure.

Treasury yields keep moving higher ahead of Fed decision, which will be released tomorrow. The yield of 2-year Treasuries climbed towards the 3.85% level, while the yield of 10-year Treasuries settled above 4.35%. Rising yields are bearish for gold that pays no interest.

U.S. dollar gained ground against a broad basket of currencies, putting additional pressure on gold and other precious metals.

The nearest support level for gold is located in the $4530 – $4550 range. If gold declines below the $4530 level, it will head towards the next support at $4350 – $4370.

On the upside, gold needs to settle back above the resistance at $4660 – $4680 to have a chance to gain sustainable upside momentum in the near term.

Silver Tests New Lows

Silver is losing ground as gold/silver ratio climbed above the 62.50 level. In case gold/silver ratio stays above the 50 MA at 61.92, it will head towards the 65.00 level, which will be bearish for silver.

The continuation of the oil rally will likely put additional pressure on silver, which is dependent on industrial demand. Interestingly, UAE decision to leave OPEC and OPEC+ did not put any pressure on oil markets, which shows that oil traders are extremely bullish.

Silver is moving towards the nearest support level, which is located in the $71.00 – $72.00 range. If silver declines below the $71.00 level, it will head towards the next support at $65.00 – $66.00. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

Platinum Attempts To Settle Below The Support At $1880 – $1900

Platinum is under pressure amid broad pullback in the oil markets, which is driven by the situation in the Middle East. Palladium markets are down by -0.5%, which is bearish for platinum.

Currently, platinum attempts to settle below the support level at $1880 – $1900. If platinum manages to settle below the $1880 level, it will head towards the next support at $1780 – $1800. A move below the $1780 level will push platinum towards March lows near the $1700 level.

On the upside, a move above the $1950 level will open the way to the test of the psychologically important $2000 level. If platinum climbs back above $2000, it will head towards the resistance at $2040 – $2060.

If you’d like to know more about how to trade gold and silver, please visit our educational area.