Gold, silver and platinum lose momentum as dollar stabilises ahead of key PMI data
Gold retreats from highs as dollar stabilizes ahead of PMI data
Precious metals that had earlier benefited from the sustained weakness in the U.S. dollar are beginning to lose traction as the dollar shows signs of stabilisation.
After three days of steady gains, gold, silver, and platinum are facing downward pressure in Thursday’s European session, closely tracking the modest recovery in the dollar index.
Highlights
- Gold reversed from its recent peak as the dollar firmed.
- Silver wiped half its weekly gains after hitting $33.7 resistance.
- Platinum records 10% surge this week and is now in overbought condition.
Gold extended its bullish move early in the day, pushing past the previous week’s high of $3,323 to a new intraday high at $3,345. However, that momentum faded once the U.S. dollar started gaining ground. Price has since reversed sharply, breaking below the prior day’s low of $3,286 and currently trades near $3,296. The structure on the 4-hour chart shows a golden cross at $3,266, where the 50-day EMA crossed above the 100-day EMA. This level aligns with an ascending trendline that connects gold’s rebound from last week’s lows. It serves as both technical support and a potential re-entry level for buyers if the decline extends.
Silver correction deepens while platinum stability signals divergence
Silver showed similar early strength. It broke above a six-week high during the Asian session and tested a key resistance at $33.7. That level marks the upper bound of a consolidation zone that has contained price action for several weeks. However, silver has since retreated sharply, dropping over 3% to a session low near $32.60 before recovering slightly to $32.82. The pullback has reversed more than half of this week’s gains. On the 4-hour chart, the retreat found support around the 50 and 100 EMAs, suggesting price is still in a technically neutral zone, pending a clearer catalyst.
Gold, silver, and platinum price dynamics (March-May 2025). Source: MT4
Platinum remains the standout performer this week, having gained close to 10% to reach a multi-month high at $1,084. Despite its overbought condition, the metal has shown relative stability. After dipping to an intraday low of $1,058.5 during the European session, it has climbed back toward $1,076 ahead of the North American Open. The near-term upside target lies at $1,100, while minor support holds at $1,055.
The broader direction for precious metals now depends on the U.S. dollar response to key PMI reports. Both the Manufacturing and Services Flash PMI figures are due and may influence the dollar’s next move. A stronger dollar would likely weigh further on metals prices through negative correlation, especially given their already extended positions earlier in the week. Until then, precious metals may trade in a reactive, range-bound manner near their recent pivot levels.
Gold, silver and platinum rose after the dollar weakened due to Moody’s downgrade and trade tensions. Prices extended breakout moves as technical momentum supported further gains.
