Gold Moves Towards The Key Resistance At $2000

Key Insights

• Gold continues to gain ground as traders focus on strong demand for safe-haven assets. 
• Geopolitical tensions are increasing, which is bullish for gold. 
• A move above $2000 will push gold towards the resistance at $2020.

Gold Rallies Despite Stronger Dollar

Gold is moving towards the resistance level at $2000 as demand for safe-haven assets stays strong.

The U.S. dollar has recently moved to yearly highs as traders are were increasing purchases of safe-haven assets. Meanwhile, S&P 500 futures moved lower in premarket trading, highlighting the declining demand for riskier assets, which is bullish for gold.

Stronger dollar and higher Treasury yields will likely put no pressure on gold markets today as demand for gold and other precious metals stays strong. In this market environment, VanEck Gold Miners ETF should easily get above the $41 level.

VanEck Gold Miners ETF has recently moved above yearly highs, and there is plenty of room to gain additional upside momentum. In case gold gets above the psychologically important $2000 level, VanEck Gold Miners ETF could rally closer to the $42 level.

Technical Analysis

Gold managed to settle above the resistance level at $1975 and moved closer to the resistance at $2000. In case gold settles above the $2000 level, it will gain additional upside momentum and head towards the next resistance level at $2020.

A move above the resistance at $2020 will open the way to the test of the next resistance at $2050. In case gold manages to settle above this level, it will head towards the resistance level, which is located near yearly highs at $2075.

On the support side, the previous resistance level at $1975 will serve as the first support level for gold. In case gold manages to settle back below this level, it will move towards the next support at $1965.

A successful test of the support at $1965 will push gold towards the support level at $1950. If gold declines below this level, it will head towards the next support at $1935.

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