Gold gains ground as Israel plans negotiations with Lebanon

Gold is moving higher as traders focus on weaker dollar, falling Treasury yields, and geopolitical developments. Israel said that direct negotiations between the country and Lebanon will begin next week. The first meeting will take place in Washington between ambassadors. Iran has previously noted that Lebanon was part of a ceasefire deal, while Israel insisted that its operation in Lebanon against Hezbollah would continue. Traders view recent changes in Israel’s position as a sign indicating that U.S. and Iran would reach a peace deal and the Strait of Hormuz would be fully unblocked. Oil prices pulled back from session highs, and demand for riskier assets increased. U.S. dollar pulled back against a broad basket of currencies as traders reacted to the disappointing U.S. GDP Growth Rate report. The slowdown of the economy may force the Fed to be less hawkish, which is bearish for the American currency. Weaker dollar is bullish for gold and other dollar-denominated commodities. Treasury yields moved lower as bond traders focused on geopolitical developments. The yield of 2-year Treasuries pulled back towards the 3.75% level, which was bullish for gold. Falling yields serve as a positive catalyst for precious metals that pay no interest. Currently, gold is trying to settle back above the $4800 level. In case this attempt is successful, gold will head towards the nearest resistance, which is located in the $4860 – $4880 range. A successful test of this level will open the way to the test of the next resistance at $4980 – $5000. Silver Rallies As Gold/Silver Ratio Pulls Back Silver is moving higher as gold/silver ratio declined below the 63.00 level. A move below the 61.50 level will push gold/silver ratio towards 57.50, which will be bullish for silver. Weaker dollar and rising demand for riskier assets serve as key positive catalysts for silver markets today. In the near term, traders will stay focused on geopolitical developments, which will have a major impact on demand for silver. The price of silver will likely increase amid signs of stabilization in the Middle East. The nearest resistance level for silver is located in the $78.00 – $79.00 range. In case silver manages to settle above the $79.00 level, it will head towards the next resistance, which is located in the $84.00 – $85.00 range. Platinum Tests New Highs Platinum attempts to settle above $2060 amid broad rally in precious metals markets. Palladium markets are down by -0.7%, but this pullback did not serve as a negative catalyst for platinum. Oil prices pulled back from session highs, which was bullish for platinum. Currently, Brent oil is trying to settle back below the $96.00 level. In case this attempt is successful, Brent oil will move towards the $91.00 level, providing additional support to platinum markets. From the technical point of view, platinum attempts to settle above the resistance at $2040 – $2060. If platinum manages to settle above the $2060 level, it will move towards the resistance at $2210 – $2230. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge. If you’d like to know more about how to trade gold and silver, please visit our educational area.