Gold (XAUUSD), Silver, Platinum Forecasts – Gold Tests The $5000 Level As Traders Focus On Geopolitical Risks

Gold Gains Ground Despite Stronger Dollar

Gold continues its attempts to settle above the psychologically important $5000 level as traders focus on rising geopolitical risks.

According to a recent Axios report, the U.S. may start a major military operation against Iran.

The U.S. continues to increase its military presence in the region, and traders bet that the decision to strike Iran has already been made.

In case the hawkish scenario unfolds, gold may get additional support as traders will rush to buy safe-haven assets. That said, it should be noted that Iran is expected to present its nuclear deal proposals within two weeks, while the markets are acting as if a major conflict in the Middle East is imminent.

U.S. dollar gained ground as Initial Jobless Claims declined to 206,000, which was bearish for gold and other precious metals.

From a big picture point of view, U.S. dollar continues to rebound after the sell-off, which was triggered by Trump’s attempts to acquire Greenland.

This is a bearish development for gold as dollar’s recent strength indicates that global markets have not lost faith in the American currency.

However, it is not clear how the U.S. dollar reacts to a potential military conflict in the Middle East. If dollar pulls back towards yearly lows, gold will gain additional support.

In case gold manages to settle above the $5000 level, it will move towards the nearest resistance level at $5100 – $5120. A move above this level will signal that gold is ready to gain sustainable upside momentum. In this scenario, gold will head towards the $5450 level.

Silver Attempts To Settle Above The $79.00 Level

Silver managed to gain some ground, supported by geopolitical tensions. Gold/silver ratio was mostly unchanged.

Gold/silver ratio has been extremely volatile in recent weeks, and it remains to be seen whether today’s lack of volatility marks the beginning of a new trend.

From the technical point of view, silver is trying to settle above the resistance level at $78.00 – $79.00. In case silver manages to settle above the $79.00 level, it will get to the test of the 50 MA at $81.25. A move above the 50 MA will push silver towards the next resistance at $86.00 – $87.00.

Platinum Retreats As Traders Worry That High Oil Prices Could Hurt Global Economy

Platinum pulled back after an unsuccessful attempt to settle above the resistance level at $2040 – $2060.

Platinum markets were down by more than 2% in today’s trading session, which was bearish for platinum.

The potential conflict in the Middle East may serve as a bearish catalyst for platinum. Demand for platinum is dependent on industrial activity. In case oil skyrockets during the major conflict in the Middle East, the global economy will find itself under pressure, and demand for platinum would drop.

It remains to be seen whether investment demand for platinum will be sufficient to push prices higher in this scenario. Unlike gold and silver, platinum is not the metal of first choice for investors.

The technical picture remains unchanged as platinum needs to settle above the $2060 level to have a chance to gain sustainable upside momentum in the near term.

If platinum settles above $2060, it will head towards the 50 MA at $2187. A move above the 50 MA will push platinum towards the next resistance level, which is located in the $2245 – $2265 range.

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