Gold Rebounds from Session Lows Amid Strong Dollar and Rising Yields
Gold prices rebounded from session lows despite a strong dollar and rising Treasury yields. The yield of 2-year Treasuries climbed above 4.76% as bond traders bet that the Fed will raise rates at its next meeting in October, with a probability of 53.1%, according to the FedWatch Tool.
The stronger dollar is bearish for gold and other dollar-denominated commodities, but it remains to be seen whether higher yields will put material pressure on gold markets. Traders may start buying gold if the situation in bond markets gets out of control.
On the upside, gold needs to settle above $4400 to gain momentum in the near term, and would then head towards the resistance level at $4480-$4500. On the downside, a settlement below $4300 would send gold towards the next support at $4160-$4180.
Silver remains stuck near the resistance at $65.00-$66.00 as traders' gold/silver ratio pulls back towards 65.50. A move above $68.00 would open the way to test the psychologically important $70.00 level, while a settlement below $65.00 would push silver towards its 50 MA at $63.28.
Platinum gained ground as traders focused on the pullback in oil markets driven by Trump's comments on Iran. If platinum manages to settle above $1800, it will head towards the next resistance at $1870-$1890, with a move above $1890 opening the way to test the $1950 level.