Gold, silver and platinum outlook turns bullish as credit rating shock fuels safe-haven appeal
Gold has been boxed in between the 20-day EMA resistance
Precious metals opened the new week on firmer ground as traders reacted to a surprise downgrade of the U.S. government's credit rating. The downgrade stoked demand for safe-haven assets like gold and silver, despite lingering optimism around a temporary U.S.-China trade truce and prospects of further U.S. trade agreements elsewhere.
Gold kicked off Monday, May 20th, with a gap up at $3,218 per ounce, reaching a session high of $3,250 during European trading, a near 1% gain. However, last week’s performance remained negative, as gold closed down 3.6% at $3,200, revealing bearish pressure from the prior sessions.
On the daily chart, gold has been boxed in between the 20-day EMA resistance near $3,267 and the 50-day EMA support at $3,167. This tight price range reflects a standoff between buyers and sellers. Although the 4-hour RSI has recently shifted into bullish territory, short-term moving averages, particularly the 50 and 100 EMA on the 4-hour timeframe — are limiting further upside. Daily RSI still hovers in neutral territory, suggesting price indecision. A sustained break above these short-term resistance zones could shift market sentiment away from bearish retracement toward a fresh leg higher.
Silver and platinum face tight resistance bands as buyers test weekly ceilings
Silver has been stuck in a narrow range between $33.70 and $31.70 for five consecutive weeks. The metal printed a neutral doji last week, and despite today’s 1% uptick to $32.60, momentum remains muted. Daily RSI continues to linger around the 50 level, pointing to a lack of directional conviction. Unless RSI breaks convincingly out of this midpoint range, silver is likely to continue oscillating within this consolidation, slowly drawing in on both buy-side and sell-side liquidity without triggering breakout flows.
Gold price dynamics (March-May 2025). Source: TradingView
Platinum posted over 1% gains in today’s European session, rising to $996.2 after breaching last week’s short-term highs. Although price has been consolidating between $973 and the psychological $1,000 level for the past nine days, a notable development lies in the upward slope of the 20, 50, and 100-day EMAs. These are gradually forming a rising base beneath the current price action. This is a technical sign that medium-term sentiment is tilting to the upside.
Both daily and 4-hour RSI for platinum have flashed bullish signals several times over the past weeks, but price has repeatedly failed to break above $1,000. The approach toward this level once again today may invite further upside tests, particularly if price can close decisively above the ceiling that has rejected bulls multiple times.
Weak U.S. retail sales and PPI data lifted gold prices briefly but failed to spark a breakout. Prices later pulled back as metals stayed trapped in their technical range.
