Gold Prices Retreat as Oil Nears $120; Silver and Platinum Rebound

Gold prices retreated as a strong rally in oil markets influenced traders. Oil prices nearly reached $120 a barrel, driven by ongoing tensions and developments in the Middle East. The Strait of Hormuz remains closed, with Iran continuing strikes on regional oil producers.

The U.S. dollar gained strength, attracting safe-haven demand. However, this demand did not support gold markets. Some leveraged gold traders were forced to close positions due to geopolitical tensions and financial market turmoil. Iran’s selection of Mojtaba Khamenei as its new supreme leader suggests the country does not plan to yield soon.

Gold stabilized near support levels of $5100 to $5120. A move above $5120 and then $5200 could see prices target resistance near $5430 to $5450. Meanwhile, silver rebounded from session lows as oil prices pulled back. WTI crude fell below $95.00, and Brent crude dropped below $100.

Traders expect G7 countries to release oil from reserves, which could lower prices. This would likely benefit silver, given its industrial demand. The gold/silver ratio also pulled back toward 60.00, offering additional support to silver. Silver received support above $79.00 and moved towards $86.00-$87.00 resistance.

Platinum prices rebounded, also reacting to oil market changes. U.S. equities nearly returned to positive territory, signaling rising risk appetite among traders. Palladium markets rose by roughly 2%, providing extra support for platinum. Platinum climbed above $2100 after failing to settle below $2040-$2060 support.