Gold (XAUUSD), Silver, Platinum Forecasts – Gold Tests New Lows As Traders Focus On Hawkish Fed Policy Outlook

Gold Tests Support At $4180 – $4200

Gold remains under strong pressure as traders stay focused on hawkish Fed policy outlook.

FedWatch Tool indicates that there is a 38.5% chance that Fed will raise rates at the next meeting in July. Traders expect that Fed will raise rates in September (with a 51.7% probability), and some market players are even ready to bet on two hikes in two meetings (22.1% probability). The market expects two rate hikes by the end of the year.

Fed policy outlook has significantly changed in recent days, so gold traders must adapt to this shocking development. Rising interest rates are bearish for gold and other precious metals that pay no interest, so it’s not surprising to see that traders rush to sell gold.

U.S. dollar was mostly flat against a broad basket of currencies in today’s trading session as traders took some profits off the table after the strong rally. It should be noted that forex markets are calm today due to Juneteenth National Independence Day. Dollar’s rally may resume when traders get back to their desks on Monday, putting more pressure on gold markets.

Currently, gold is trying to settle below the support level at $4180 – $4200. In case this attempt is successful, gold will head towards the next support, which is located in the $4020 – $4040 range.

On the upside, gold needs to settle back above the $4200 level to have a chance to gain sustainable upside momentum in the near term. A move above the $4200 level will open the way to the test of the resistance level at $4370 – $4390.

Silver Remains Under Pressure As Pullback Continues

Silver tested new lows as traders focused on the pullback in gold markets and worried about hawkish Fed. Gold/silver ratio was mostly flat in today’s trading session, and its dynamics had no material impact on the price of silver.

From the technical point of view, silver attempts to settle below the support level at $65.00 – $66.00. If silver manages to settle below the $65.00 level, it will head towards the support level at $61.00 – $62.00.

It should be noted that the support at $61.00 – $62.00 should be strong as the $61.00 level marks the 50% correction from historic highs. In case silver manages to settle below the important $61.00 level, it may gain significant downside momentum. RSI remains in the moderate territory, so there is plenty of room to gain additional momentum in case the right catalysts emerge.

Platinum Retreats As Traders Stay Bearish

Platinum is losing ground amid broad pullback in precious metals markets. Palladium markets are down by -1.7%, which is bearish for platinum.

Platinum moved below the support level at $1680 – $1700 and is trying to settle below the $1650 level. In case this attempt is successful, it will head towards the support at $1600 – $1620. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.

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