(Kitco News) – Precious metals are on the move on Thursday afternoon, with gold rallying on central bank dovishness while silver nears the $30 level and platinum tests key resistance at $980, according to analyst Vladimir Zernov at FX Empire.
“Gold tested historic highs after ECB cut the interest rate from 4.25% to 3.65%,” Zernov wrote. “Analysts also expect that Fed will start the new rate cut cycle next week, which is bullish for gold and other precious metals.”
Zernov said that if gold settles above $2,550 per ounce, it will make a run at the $2,600 level. “RSI remains in the moderate territory, so there is plenty of room to gain momentum,” he added.
Turning to silver, Zernov noted that the gray metal is rallying as the gold/silver ratio pulls back towards the 85.50 level. “A move above the $30.00 level will open the way to the test of the resistance at $31.45 – $31.75,” he said.
Platinum is also seeing strong upside momentum as it benefits from the broad rally in precious metals markets.
“A successful test of the resistance at $975 – $985 will open the way to the test of the next resistance level at $1020 – $1030,” Zernov said.
At the time of writing gold prices continue to trade just off session highs, with spot gold last trading at $2556.72 per ounce for a gain of 1.80%, while spot silver trades within 15 cents of the $30 per ounce level for a gain of 3.95%.
Spot platinum is having its strongest session in some time, trading within a dollar of session highs and above $979 per ounce for a gain of over 2.85% on the daily chart.
