Gold, Silver, Platinum Forecasts: Precious Metals Tarnish as US Inflation Shines Brighter By 0.4%

Key Insights

• Despite the inflationary crescendo, gold‘s rhythm seems slightly off, wobbling below the $1880 mark, hinting at a potential triple-top jig.
• The stronger US dollar put Silver in a spin, with key moves expected below the $22.25 floor, amplifying the bearish blues.
• Platinum‘s dance feels the weight as it flirts with the 880 mark.

US Inflation Rises, Dimming Gold, Silver, and Platinum’s Glow

As the luster of Gold, Silver, and Platinum began to wane, the recently disclosed US inflation data shone brighter than expected. The Consumer Price Index (CPI) saw a monthly increase of 0.4% and a substantial annual growth of 3.7%, outstripping predictions of 0.3% and 3.6% respectively. While the Core CPI met the anticipated figures, growing by 0.3% over the month and 4.1% annually, the substantial surge in shelter costs predominantly drove this inflationary rise, accounting for over half of the CPI’s climb.

Traditionally, a robust CPI has prompted selling in metals, and this trend seemed to hold as these precious metals faced downward pressure. Concurrently, despite the inflationary uptick, real average hourly earnings experienced a slight decline of 0.2% for the month, though they registered a promising annual increase of 0.5%.

Gold (XAU/USD)

On October 12, following the release of the stronger US CPI data, the XAU/USD experienced a downturn, trading at $1870, marking a decline of 0.10%. Analyzing its position on the 4-hour chart, the pivot point for gold is identified at $1880. In terms of resistance, the immediate level stands at $1865, with subsequent resistances observed at $1851 and $1829. Conversely, support levels are more bullish, with the immediate support set at $1901 and further bolstered at $1930.

The Relative Strength Index (RSI) for the precious metal is notably high at 78, indicating a potentially overbought market. Conclusively, the overarching sentiment for gold appears bearish, especially if it remains below the $1880 threshold, highlighting a potential triple-top pattern. In the short term, market participants can anticipate yellow metal gold, potentially challenging the mentioned resistance levels in the ensuing trading sessions.

Silver (XAG/USD)

On October 12, Silver (XAG/USD) faced headwinds, slipping below the $22 mark and recording a decline of over 0.85% on Thursday. This downtrend is attributed to the bolstering US dollar, propelled by stronger CPI figures. In the context of a 4-hour chart, the metal’s pivot point is established at $21.50.

Ascending, immediate resistance for Silver is seen at $22.29, followed by $22.99 and a steeper climb to $23.81. On the flip side, support levels are laid down starting from $20.79, with added cushions at $19.99 and $19.27. The 50-day Exponential Moving Average (EMA) for Silver is situated at $21.85, with the current price under this EMA, implying a short-term bearish sentiment.

Concluding, the overall trend for Silver appears bearish, especially under the $22.25 mark, corresponding to the 50% Fibonacci retracement level. Simultaneously, Silver’s positioning below the 50 EMA fortifies the bearish view. In forthcoming sessions, market observers might anticipate Silver’s movements around these defined resistance points.

Platinum

On October 12, Platinum displayed a downward momentum, shedding nearly 1.50% of its value to trade at 870, as illustrated on the 4-hour chart. The pivot point for this precious metal is set at 881.03. For those bullish on Platinum, they’ll be eyeing resistances at 909.37, followed by a stronger ceiling at 941.09, and subsequently at 969.44. Conversely, if the metal continues its descent, it will find immediate support at 848.63, with additional cushions at 820.29 and 787.89.

Concluding the technical analysis, the overall trend for Platinum leans bearish, especially when trading below the 880 mark. This sentiment is reinforced by a bearish breakout from an upward channel and a bearish crossover on the 50 EMA.Consider selling below 880 level and vice versa.

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