Gold (XAUUSD), Silver, Platinum Forecasts – Gold Tests The $5000 Level Amid Rising Geopolitical Risks

Gold Rebounds After Yesterday’s Sell-Off

Gold prices are moving higher as traders focus on geopolitical risks. According to recent reports, Russia – Ukraine negotiations did not achieve material progress.

According to both Russian and Ukrainian officials, the talks were difficult. Both sides indicated that negotiations will proceed.

Traders also remained focused on U.S. – Iran nuclear deal talks. Iran is expected to present its proposals within two weeks. However, traders are worried that U.S. may strike Iran to put more pressure on the country.

As a result, rising geopolitical premium provided material support to gold and other precious metals. It should be noted that gold traders ignored stronger dollar and rising Treasury yields.

U.S. dollar moved higher against a broad basket of currencies as trades focused on the better-than-expected economic reports. Treasury yields gained ground as traders reduced their bets on dovish Fed. The yield of 2-year Treasuries climbed above the 3.45% level, while the yield of 10-year Treasuries settled above 4.05%.

Currently, gold is trying to settle back above the psychologically important $5000 level. In case this attempt is successful, gold will move towards the nearest resistance level, which is located in the $5100 – $5120 range. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

On the support side, a successful test of the support at $4880 – $4900 will push gold towards the next support level at $4670 – $4690. The market remains choppy, and traders should be prepared for fast moves.

Silver Tests Resistance At $78.00 – $79.00

Silver gained ground as gold/silver ratio declined towards the 64.00 level. The strong pullback in gold/silver ratio indicates that traders are bullish and are ready to increase their speculative positions.

Yesterday’s sell-off was quickly bought, and silver remains stuck in a wide trading range between the support elvel at $71.00 – $72.00 and the resistance level at $78.00 – $79.00.

If silver manages to settle above the $79.00 level, it will move towards the next resistance, which is located in the $86.00 – $87.00 range. A move above the $87.00 level will push silver towards the psychologically important $90.00 level.

On the support side, silver needs to settle below the key support at $71.00 – $72.00 to gain sustainable downside momentum in the near term. If silver declines below this support level, it will head towards the $64.00 level.

Platinum Soars As Traders Focus On The Rally In Gold Markets

Platinum gained strong upside momentum amid broad rally in precious metals markets.

Demand for precious metals increased in absence of Chinese investors, who enjoy their Lunar New Year holidays. Rising geopolitical risks provided significant support to platinum.

Palladium markets gained 3.5% in today’s trading session, which was also bullish for platinum.

Currently, platinum is trying to settle above the nearest resistance level, which is located in the $2040 – $2060 range. If platinum settles above the $2060 level, it will move towards the 50 MA at $2180. In case platinum climbs above the 50 MA, it will head towards the resistance level at $2245 – $2265.

The technical picture looks bullish as platinum managed to stay above the $2000 level despite multiple attempts to gain downside momentum. However, platinum needs to settle above the $2265 level to have a chance to gain sustainable upside momentum in the near term.

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