Gold (XAUUSD), Silver, Platinum Forecasts – Silver Dives 7.5% Amid Sell-Off In Precious Metals Markets

Gold Tests Support At $4530 – $4550

Gold is under strong pressure as traders focus on strong dollar and the rally in the oil markets.

U.S. dollar gained ground against a broad basket of currencies amid rising demand for safe-haven assets. Today, global debt markets suffered a sell-off, and investors rushed to safety of the U.S. dollar.

The yield of 30-year Treasuries climbed above the 5.12% level amid worries about Fed policy outlook. Bond markets in the UK, Germany, France, Japan and other developed countries have found themselves under strong pressure.

The sell-off in bond markets forced investors to raise cash elsewhere, which had a negative impact on gold prices.

Brent oil climbed above the $109.00 level as Trump – Xi summit concluded without any breakthrough. Traders are worried that U.S. will restart the military operation against Iran over the weekend.

Currently, gold is trying to settle below the support level at $4530 – $4550. In case this attempt is successful, gold will head towards the next support, which is located in the $4530 – $4550 range. RSI is in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

Silver Retreats As Gold/Silver Ratio Tests The 59 Level

Silver suffered a strong sell-off as gold/silver ratio jumped towards the 59.00 level. In case gold/silver ratio settles above 59.00, it will move towards the 50 MA at 61.59, which will be bearish for silver.

Silver has found itself under strong pressure as traders rushed to sell risk assets amid geopolitical worries and rising yields in the developed world. It remains to be seen whether today’s move in bond markets will ultimately turn into a serious crisis, but speculative traders will likely prefer to close their positions.

From the technical point of view, silver is trying to settle below the support level at $78.00 – $79.00. In case silver manages to settle below the $78.00 level, it will head towards the support level at $71.00 – $72.00.

On the upside, silver needs to climb back above the $79.00 level to have a chance to gain upside momentum in the near term. In this scenario, silver will move back towards the resistance level at $85.00 – $86.00.

Platinum Tests Weekly Lows

Platinum is losing ground amid broad sell-off in precious metals markets. Palladium markets are down by 2.1%, which is bearish for platinum.

Traders are worried that high oil prices will hurt global economy and reduce demand for platinum, which is dependent on industrial demand. Declining appetite for risk serves as an additional bearish catalyst for platinum markets.

Platinum moved below the support at $2040 – $2060 and settled below the 50 MA at $2010. In case platinum declines below the $1950 level, it will head towards the next support level, which is located in the $1880 – $1900 range. A move below the $1880 level will push platinum towards the $1800 level.

On the upside, platinum needs to settle back above the $2060 level to gain upside momentum. In this case, platinum will head towards the $2140 level.

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