Gold (XAUUSD), Silver, Platinum Forecasts – Gold Tests The $4000 Level

Gold Is Losing Ground As Oil Prices Rally

Gold is under strong pressure as traders focus on the strong rally in the oil markets. Oil prices are up by +6% as Donald Trump announced that U.S. will impose a naval blockade on Iranian ports.

He added that U.S. could charge fees of as much as 20% for safe passage through the Strait of Hormuz. He did not reveal how these fees would be charged.

Anyway, it is clear that the situation in the Middle East has deteriorated quickly. Most likely, Iran would respond by attacking vessels that did not receive approval for passage. Iran’s allies Houthis may also try to attack ships in the Bab al-Mandab Strait.

Treasury yields moved higher as bond traders reacted to rising geopolitical tensions. The yield of 2-year Treasuries climbed above the 4.26% level, while the yield of 10-year Treasuries settled near 4.61%. Rising Treasury yields put material pressure on gold markets in today’s trading session.

Not surprisingly, U.S. dollar gained ground against a broad basket of currencies as traders bet on hawkish Fed. Strong dollar is bearish for gold and other dollar-denominated commodities as it makes them more expensive for buyers who have other currencies.

Currently, gold is trying to settle below the support level at $4020 – $4040. In case this attempt is successful, gold will head towards the next support, which is located in the $3930 – $3950 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

On the upside, gold needs to settle back above the $4050 level to have a chance to gain upside momentum. In this case, gold will head towards the resistance at $4180 – $4200.

Silver Retreats Amid Rising Treasury Yields

Silver pulled back as gold/silver ratio climbed above the 69.00 level. If gold/silver ratio stays above 69.00, it will head towards recent highs near 71.50, which will be bearish for silver.

The nearest support level for silver is located in the $56.00 – $57.00 range. A move below the $56.00 level will push silver towards the next support level at $51.00 – $52.00. This move may be fast as speculative traders, who bought silver near the support at $56.00 – $57.00, would rush to sell their positions.

On the upside, a move above the $59.00 level will push silver back towards the resistance level at $61.00 – $62.00.

Platinum Pulled Back Below The $1600 Level

Platinum moved lower amid broad pullback in precious metals markets. Palladium markets were down by -2.2%, which was bearish for platinum.

From the technical point of view, platinum did not manage to settle above the resistance at $1600 – $1620 and is trying to settle back below the $1600 level. In case this attempt is successful, platinum will head towards the support level at $1500 – $1520.

On the upside, a successful test of the resistance at $1600 – $1620 will open the way to the test of the next resistance level at $1680 – $1700.

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