(Kitco News) – Precious metals are seeing a strong rally following sector-supportive measures from China, with gold setting fresh all-time highs while silver and platinum continue to build on their recent strength, according to analyst Vladimir Zernov at FX Empire.
Gold was back in uncharted territory on Tuesday after China’s central bank cut its lending rates while also lowering its reserve requirement ratio for commercial banks in an effort to boost the country’s flagging economy.
“In case gold manages to settle above the $2650 level, it will head towards $2700,” Zernov projected, but warned that “RSI is in the overbought territory, so the risks of a pullback are increasing.”
Spot gold continued to march higher throughout the afternoon, last trading at $2,659.47 per ounce for a gain of 1.17% after establishing a new all-time high of $2,661.28 just before 3:30 pm EDT.
Turning to silver, Zernov noted that the gray metal was also challenging the upper band of resistance, with traders betting that China’s latest round of stimulus measures will boost its industrial demand.
“If silver settles above the resistance at $31.45 – $31.75, it will move towards the next resistance level, which is located in the $34.00 – $34.25 range,” he said.
Silver prices have also maintained their strength on Tuesday, with spot silver Holding above $32 and last trading at $32.189 per ounce for a gain of nearly 5% on the daily chart.
Platinum has also gained ground amid the broad-based rally in precious metals markets and is also benefiting from the expectation that China’s stimulus measures will propel industrial demand for the metal.
“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.
Platinum prices climbed steadily on Tuesday with virtually no pullbacks, last trading at $987.26 for a 3.07% gain on the session.
