Gold, Silver, Platinum Forecasts – Weak Dollar Providing Precious Metal Support

By:

James Hyerczyk

Published: Jun 24, 2024, 17:22 GMT+00:00

Key Points:

Gold prices rose on Monday due to a weaker dollar, with investors anticipating U.S. inflation data for insights on future Federal Reserve policy.
Silver remained flat at mid-session on Monday, with traders buying on dips while focusing on interest rate trajectories, upcoming PCE data, and Fed speeches.
Platinum is rising on Monday, supported by a weaker U.S. Dollar and steady metals, with a 2024 deficit projected at 476,000 ounces.

Gold

Daily Gold (XAU/USD)

Gold prices rose on Monday, boosted by a weaker dollar. Investors are anticipating U.S. inflation data later this week, which could provide insights into the Federal Reserve’s future monetary policy.

XAU/USD is edging higher late in the session on Monday as traders attempt to claw back Friday’s steep decline. The move isn’t very impressive, however, and in my opinion, there would’ve been more buyers had the market retraced all the way down to the $2305.35 to $2294.30 support area.

The 50-day moving average at $2342.34 is the nearest resistance, but it also serves as a potential trigger point for an acceleration to the upside.

Given the well-defined support and resistance levels, I wouldn’t be surprised by a rangebound trade until the release of the U.S. Core PCE data on Friday.

Silver

Daily Silver (XAG/USD)

Silver remained flat at mid-session on Monday, consolidating as traders buy on dips. Investors are focused on the trajectory of interest rates and the timing of potential rate cuts. Key data this week includes the U.S. Personal Consumption Expenditures (PCE) report on Friday and speeches by five Fed officials. Traders currently see a 66% chance of a September rate cut. Silver could reach $36/oz in 12-18 months if non-commercial demand increases, supported by lower rates reducing the opportunity cost of holding bullion.

Technically, XAG/USD is showing resilience with buyers stepping in as it approaches the 50-day moving average at $29.53. There’s a support zone between $29.00 and $28.75. The daily chart suggests that if it breaks below this zone, it could accelerate downward to $26.00. Resistance levels are between $30.89 and $31.21.

Platinum

Daily Platinum (XPT/USD)

Platinum is edging higher on Monday, supported by a weaker U.S. Dollar and steady gold and silver prices. The metal is up about 1.95% this year. According to the World Platinum Investment Council (WPIC), the global platinum deficit in 2024 will be deeper than expected due to reduced supply from South African and Russian mines. The 2024 deficit is projected at 476,000 troy ounces, smaller than 2023’s 851,000 ounces due to a 5% demand drop. The WPIC had previously estimated the 2024 shortage at 418,000 ounces.

XPT/USD is picking up strength on the daily chart after crossing to the strong side of both the 50-day moving average at $985.34 and the support base at $985.42 to $974.95. If the upside momentum continues then look for a surge into the resistance zone at $1010.83 to $1020.55.

The next major move in platinum could be determined by the direction of the U.S. Dollar.

About the Author

James Hyerczykauthor

James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.