Gold (XAUUSD), Silver, Platinum Forecasts – Gold Rebounds Despite Rising Treasury Yields

Gold gains ground despite rising Treasury yields and stronger dollar. The yield of 2-year Treasuries climbed above 4.17% as bond traders focused on the better-than-expected Michigan Consumer Sentiment report. The report showed that year-ahead inflation expectations declined from 4.6% in june to 4.2% in July. Fed monitors inflation expectations, so the report is bullish for gold as Fed may be less hawkish. That said, FedWatch Tool indicates that there is a 49.9% chance that Fed will raise rates at the meeting in September. A potential rate hike is a bearish catalyst for gold that pays no interest. U.S. dollar gained ground against a broad basket of currencies as forex traders reacted to economic reports. Stronger dollar did not put pressure on the price of gold today. Oil prices rallied 3% amid rising tensions in the Middle East. Interestingly, rising oil prices did not reduce demand for gold in today’s trading session. Currently, gold is trying to settle back above the resistance level at $4020 – $4040. In case this attempt is successful, gold will move towards the $4100 level. A move above $4100 will push gold towards the next resistance at $4180 – $4200. If gold climbs above $4200, it will head towards the 50 MA at $4291. On the support side, a move below the $4000 level will push gold towards the nearest support at $3930 – $3950.

Silver moves higher as traders focus on the rebound in gold markets. Gold/silver ratio settled near the 71.50 level, which was neutral for silver. In case gold/silver ratio stays above 71.30, it will head towards the 74.00 level, which will be bearish for silver. In case silver manages to settle back above the $57.00 level, it will head towards the resistance at $61.00 – $62.00. In this scenario, silver will settle back in a range between $56.00 and $62.00. If silver stays below the $56.00 level, it will move towards the next support level, which is located in the $51.00 – $52.00 range. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in the near term.

Platinum pulls back as traders react to the strong rally in the oil markets. Platinum is dependent on industrial demand, so rising oil prices serve as a bearish catalyst as they may trigger a slowdown of the global economy. Palladium markets are mostly flat in today’s trading session, which is neutral for platinum. From the technical point of view, platinum attempts to settle below the support level at $1600 – $1620. In case platinum manages to settle below the $1600 level, it will head towards the next support, which is located in the $1500 – $1520 range. On the upside, platinum needs to climb back above the $1620 level to have a chance to gain upside momentum in the near term. In this case, platinum will head towards the resistance level at $1680 – $1700. A move above the $1700 level will push platinum towards the 50 MA at $1768.