Gold (XAUUSD), Silver, Platinum Forecasts – Silver Soars 6% Despite Rising Oil Prices

Gold Is Mostly Flat As Modi Tells Indians To Stop Buying

Gold is mostly flat despite rising Treasury yields. The yield of 2-year Treasuries climbed above the 3.93% level as traders focused on rising tensions in the Middle East.

President Trump rejected Iran’s response to the U.S. peace plan and noted that the ceasefire was on “massive life support”. Brent oil rallied above the $105.00 level as traders reacted to Trump’s words. Interestingly, the strong rally in the oil markets did not put pressure on the price of gold.

U.S. dollar gained some ground against a broad basket of currencies as demand for safe-haven assets increased. Stronger dollar did not put material pressure on gold markets.

Interestingly, India’s Prime Minister urged citizens to stop buying gold for a year. According to Modi, rising gold imports put pressure on India’s foreign exchange reserves and widen its trade imbalance.

Indian rupee has been under strong pressure against the U.S. dollar in recent months, and Modi believes that the nation’s love for gold makes the situation worse. India imports almost all of the gold that is sold in the country.

It remains to be seen whether Indians will listen to Modi as the country’s citizens historically use gold for weddings and savings. At this point, traders believe that the Modi’s call will have no impact on gold price dynamics.

Gold made an attempt to settle below the support level at $4660 – $4680 but lost momentum and climbed back above the $4700 level. In case gold manages to settle above the 50 MA at $4769, it will head towards the resistance level at $4860 – $4880. RSI remains in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.

Silver Rallies As Gold/Silver Ratio Drops Towards 55

Silver rallied as gold/silver ratio declined towards the 55.00 level. The strong pullback in gold/silver ratio indicates that speculative traders have moved into the market.

In case gold/silver ratio settles below the 55.00 level, it will head towards the 52.00 level, which will be bullish for silver. RSI for gold/silver ratio is close to the oversold territory, but there is enough room to gain additional downside momentum in the near term.

Currently, silver is trying to settle above the resistance at $85.00 – $86.00. In case this attempt is successful, it will head towards the next resistance at $95.00 – $96.00. A move above the $96.00 level will push silver towards the psychologically important $100.00 level.

On the support side, the nearest support level for silver is located in the $78.00 – $79.00 range. if silver declines below the $78.00 level, it will head towards the $71.00 level.

Platinum Tests New Highs

Platinum tests new highs amid strong demand for precious metals. Palladium markets are up by 0.8%, proving additional support to platinum.

If platinum stays above the resistance at $2040 – $2060, it will head towards the $2040 level. A move above the $2040 level will push platinum towards the resistance, which is located in the $2210 – $2230.

On the support side, a move below the 50 MA at $2016 will open the way to the test of the nearest support at $1880 – $1900.

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