Gold (XAUUSD), Silver, Platinum Forecasts – Gold Tests New Lows As Oil Rallies

Gold is losing ground as traders focus on the strong rally in the oil markets. U.S. – Iran negotiations stalled, and oil traders do not believe that the Strait of Hormuz would be reopened in the near term.

Rising oil prices are bearish for gold as they reduce demand for riskier assets. Gold, which is a traditional safe-haven asset, has traded as a riskier asset for months after the strong rally attracted speculative players.

It looks that some central banks have started to sell gold to protect their economies from the oil price shock. At such times, central banks may also sell gold to provide support to local currencies. In case central banks are forced to sell more gold due to weakness of local currencies, gold markets may find themselves under significant pressure.

Treasury yields keep moving higher ahead of Fed decision, which will be released tomorrow. The yield of 2-year Treasuries climbed towards the 3.85% level, while the yield of 10-year Treasuries settled above 4.35%. Risin