Gold, Silver, Platinum Forecasts – XAU, XAG Rise Amid Weaker Dollar, while Profit-Takers Hit XPT

Gold

Gold prices rose 1% on Thursday from a two-week low as the dollar softened, with the market focusing on upcoming U.S. inflation data. Spot gold increased by 1.3% to $2,327.11 per ounce at 1412 GMT, while U.S. gold futures were 1.1% higher at $2,337.90. Lower-than-expected wholesale inventories and a significant drop in final GDP figures boosted gold. A weaker dollar, down 0.3%, and falling benchmark 10-year yields at 4.2845% also supported gold prices.

Silver

Silver prices were higher on Thursday, bolstered by a weaker dollar and economic data highlighting reduced economic momentum. Business spending on equipment declined in May, and a slump in exports increased the goods trade deficit. The government confirmed sharp moderation in Q1 GDP growth. Investors are betting on two interest rate cuts this year, despite the Federal Reserve projecting only one, reducing the opportunity cost of holding non-yielding assets like silver. The dollar weakened 0.3%, making silver more attractive to holders of other currencies.

Platinum

Platinum prices fell on Thursday after failing to sustain the previous day’s rally. Longer-term support is expected due to supply issues. The World Platinum Investment Council (WPIC) forecasts a deeper-than-expected global platinum deficit of 476,000 troy ounces in 2024, mainly due to reduced output from South African and Russian mines. This deficit is smaller than 2023’s 851,000 ounces, driven by a 5% demand drop. In the short run, its price will be influenced by its relationship with gold, silver, and the U.S. dollar.

Platinum prices fell 2.6% to $985.69 per ounce on Thursday, facing resistance at $1,010.83 and $1,020.55, while finding support at $974.95. The 50-day moving average at $988.25 serves as a critical level. RSI at 49.03 indicates neutral momentum. A break above $1,010.83 could target $1,020.55, while a drop below $974.95 may test support at $935.33. The market remains cautious amid supply concerns from South African and Russian mines.