Gold (XAUUSD), Silver, Platinum Forecasts – Gold Tests The $5000 Level As Pullback Continues

Gold Tests New Lows

Gold remains under pressure despite U.S. dollar’s pullback and falling Treasury yields.

U.S. Dollar Index, which measures the strength of the American currency against a broad basket of currencies, faced resistance near the 100.50 level and pulled back below the psychologically important 100 level. Interestingly, this move did not provide any support to gold markets. Typically, weaker dollar is bullish for dollar-denominated commodities.

The yield of 2-year Treasuries declined below the 3.70% level, while the yield of 10-year Treasuries pulled back below 4.25%. Lower yields are bullish for precious metals that pay no interest. However, gold prices moved lower despite falling Treasury yields.

Oil markets have also declined in today’s trading session, although it’s hard to say that there are any improvements in the Middle East.

From a big picture point of view, gold prices remained under pressure amid lack of strong positive catalysts. Traders ignore the dynamics of Treasury yields and the pullback of the U.S. dollar and continue to take profits after the strong rebound from February lows.

From the technical point of view, gold settled below the previous support level at $5100 – $5120 and is trying to settle below the 50 MA at $4956.

Silver Attempts To Settle Below The Support At $78.00 – $79.00

Silver made an attempt to settle below the support at $78.00 – $79.00 as traders focused on the performance of gold markets.

Gold/silver ratio made an attempt to settle above the 64.00 level but pulled back towards 62.00, which was bullish for silver.

Silver traders have also ignored U.S. dollar’s pullback, although it looks that some traders are ready to buy silver near multi-week lows.

In case silver manages to settle back above the support level at $78.00 – $79.00, it will move towards the nearest resistance level, which is located near resistance at $86.00 – $87.00.

On the support side, a successful test of the support at $78.00 – $79.00 will open the way to the test of the next support at $71.00 – $72.00.

Platinum Rallies As Traders Buy The Dip

Platinum rebounds as traders buy the dip despite the pullback in gold and silver markets. Palladium markets are up by almost 3%, providing additional support to platinum markets.

Interestingly, platinum traders are ready to bet that oil prices will move away from recent highs and that developments in the Middle East will not hurt the global economy.

It remains to be seen whether this optimism is well-grounded as the Strait of Hormuz is mostly shut, while Iran continues to attack oil-related infrastructure in the region.

Platinum made an attempt to settle below the support level at $2040 – $2060 but lost momentum and rebounded above the $2080 level. In case platinum manages to climb back above the $2100 level, it will head towards the nearest resistance level, which is located in the $2245 – $2265 range. A move above the $2265 level will push platinum towards the $2430 level.

On the support side, platinum needs to settle below $2040 to have a chance to gain downside momentum in the near term. In this case, platinum will head towards the support level at $1880 – $1900. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

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