Gold (XAUUSD), Silver, Platinum Forecasts – Gold Tests New Lows As Pullback Continues

Gold Is Losing Ground As Traders Worry About Rate Hikes

Gold tests new lows despite falling Treasury yields and weaker dollar as traders remain bearish.

The yield of 2-year Treasuries pulled back below the 4.13% level as traders reacted to the strong pullback in the oil markets. Oil prices are down by 3% despite Trump’s recent comment on Iran.

Trump said that Iranians shot down an Apache helicopter, which was patrolling over the Strait of Hormuz. He noted that two pilots were safe and uninjured and added that the U.S. “must, of necessity, respond to this attack”.

Interestingly, traders do not believe that Iran’s actions will destroy the potential deal between the U.S. and Iran.

U.S. dollar is losing ground against a broad basket of currencies as traders focus on the pullback in Treasury yields. Weaker dollar is bullish for gold and other dollar-denominated commodities as it makes them cheaper for buyers who have other currencies.

However, weaker dollar did not boost gold markets as traders remained focused on hawkish Fed policy outlook. In addition, it looks that some central banks are selling gold to provide support to local currencies.

From a big picture point of view, traders remain bearish as they believe that global central banks will raise rates to fight inflation. Higher interest rates are bearish for gold that pays no interest.

Gold declined below the support at $4350 – $4370 and is trying to settle below the $4250 level. In case this attempt is successful, gold will head towards the next support, which is located in the $4180 – $4200 range.

Silver Is Under Strong Pressure

Silver tests new lows as gold/silver ratio climbed above the 65.00 level. In case gold/silver ratio settles above 65.00, it will head towards the 68.00 level, which will be bearish for silver.

From the technical point of view, silver attempts to settle below the support at $65.00 – $66.00. In case this attempt is successful, silver will head towards the next support level, which is located in the $61.00 – $62.00 range. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

On the upside, silver needs to settle back above the resistance level at $71.00 – $72.00 to gain upside momentum in the near term. A move above the $72.00 level will push silver towards the 50 MA at $76.02.

Platinum Tests Support At $1680 – $1700 As Pullback Continues

Platinum remains under pressure as traders ignore the pullback in the oil markets. Palladium is up by +1.1%, but this move did not provide any support to platinum.

Currently, platinum is trying to settle below the support level at $1680 – $1700. In case this attempt is successful, platinum will head towards the next support, which is located in the $1600 – $1620 range. It should be noted that RSI is close to the oversold territory, so the risks of a rebound are increasing.

On the upside, a move above the resistance at $1780 – $1800 will provide platinum with a chance to gain upside momentum in the near term.

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