Gold Tests Resistance At $4160 – $4180
Gold gains ground despite stronger dollar and rising Treasury yields. U.S. dollar moved higher against a broad basket of currencies as traders focused on the problems in the European debt markets.
Treasury yields moved higher as bond traders remained worried that rising inflation will force the Fed to raise rates. FedWatch Tool indicates that the probability of a rate hike at the next meeting in October is 19.4%, but traders expect that Fed will continue the rate hike cycle in December.
The yield of 2-year Treasuries climbed above the 4.79% level, while the yield of 10-year Treasuries settled near 5.25%. Rising Treasury yields are bearish for gold that pays no interest. However, yield dynamics are not the only catalyst for gold markets. Central banks continue to buy gold to diversify their reserves amid uncertainty, which is bullish for gold.
It remains to be seen whether central banks will intensify their gold purchases amid global bond sell-off. Worries about financial sustainability of developed countries may serve as a major bullish catalyst for gold and other precious metals.
Currently, gold is trying to settle above the resistance level at $4160 – $4180. If gold manages to settle above the $4180 level, it will move towards the next resistance, which is located in the $4300 – $4320 range. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in the near term.
Silver Rebounds Above $60.00
Silver rallied as gold/silver rati pulled back towards the 69.00 level. Gold/silver failed to settle above the psychologically important 70.00 level, which was a bullish development for silver.
The nearest resistance level for silver is located in the $61.00 – $62.00 range. If silver climbs above the $62.00 level, it will head towards the 50 MA at $64.27. A move above the 50 MA will open the way to the test of the resistance at $65.00 – $66.00.
On the support side, a move below the $60.00 level will push silver towards the support, which is located in the $56.00 – $57.00 range.
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See all Gold forecastsPlatinum Moves Higher Amid Strong Demand For Precious Metals
Platinum gained upside momentum amid broad rally in precious metals markets. Palladium markets gained +1.8%, which was bullish for platinum. Dynamics of oil markets did not have an impact on platinum today as oil prices were up by +0.4%.
Platinum failed to settle below the support level at $1600 – $1620 and climbed towards the $1680 level. If platinum settles above the $1680 level, it will head towards the nearest resistance at $1700 – $1720. A move above $1720 will push platinum towards the 50 MA at $1760. In case platinum climbs above the 50 MA, it will head towards the next resistance at $1780 – $1800.
On the support side, platinum needs to settle below the $1600 level to gain downside momentum in the near term. In this case, platinum will head towards the $1520 level.
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