Gold (XAUUSD), Silver, Platinum Forecasts – Silver Dives 7% As Traders Focus On Rising Energy Prices

Gold Pulls Back From Session Highs Amid Profit-Taking

Gold retreats from session highs as traders focus on the developments in the Middle East.

U.S. and Israel delivered strikes against Iran over the weekend. Iran retaliated against a number of U.S. military assets in the region.

Demand for safe-haven assets increased, which was bullish for gold markets. However, some traders decided to take profits off the table after the strong rally.

Traders are worried that rising oil prices will cause sell-offs in global markets. However, U.S. indices managed to rebound from session lows and moved back into positive territory.

The length of the military operation against Iran is the key catalyst for gold markets. In case the operation lasts for weeks, demand for safe-haven assets will continue to increase, providing addiitonal support to gold prices.

If the military operation is finished within days, traders may rush to take profits after the strong rally.

From the technical point of view, gold failed to settle above the resistance at $5430 – $5450 and pulled back towards the $5300 level. In case gold settles below $5300, it will move towards the nearest support, which is located in the $5100 – $5120 range.

Silver Is Under Strong Pressure As Traders React To Geopolitical Developments

Silver suffered a strong sell-off as traders worried that rising energy prices will hurt global economy and reduce demand for silver.

Brent oil rallied above the $77.00 level as the flows of oil through the Strait of Hormuz have been almost halted. Iran has not officially closed the key waterway, but ships avoid risks amid tensions.

European natural gas prices rallied as Iran attacked the world’s largest LNG export plant in Qatar.  The country was forced to shut down LNG production at the plant. In case disruptions continue, natural gas prices will test new highs, putting additional pressure on global economy and potentially reducing demand for silver.

Gold/silver ratio jumped back above the 60 level as traders focused on geopolitical risks. If gold/silver ratio moves towards recent highs near the 68 level, silver prices will find themselves under more pressure.

Currently, silver is trying to settle below the support level at $86.00 – $87.00. In case this attempt is successful, silver will move towards the next support level, which is located in the $78.00 – $79.00 range.

Platinum Tests Support At $2245 – $2265

Platinum is losing ground as traders focus on the potential economic impact of the U.S. operation in Iran.

Palladium markets are down by roughly 2.5%, which is also bearish for platinum markets.

Geopolitical developments will remain the key driver for platinum markets in the upcoming trading sessions. In case energy prices continue to move higher, platinum prices may test new lows.

Platinum failed to settle above the resistance level at $2420 – $2440 and pulled back towards the nearest support at $2245 – $2265. If platinum declines below the $2420 level, it will move towards the next support at $2040 – $2060. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

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