Gold Prices Consolidate as Geopolitics Continues to Remain in the Headlines

Gold prices consolidated on Thursday, unable to gain ground. The dollar whipsawed and moved higher, and Treasury yields were mixed. Jobless claims declined to 215,000, which is the lowest tally of the year and below expectations.

Geopolitical risks continue to buoy the yellow metal. Fed Chair Powell was on the hill again for the second leg of his 2-day testimony. He again told congression oversight that he sees a series of quarter-percentage-point increases coming, though he left open the possibility of moving more aggressively should inflation persist.

Jobless claims for unemployment insurance totaled 215,000, the lowest tally since the beginning of the year. Expectations were for first-time filings to come in at 225,000 for the week ended February 26.

Technical Analysis

Gold prices consolidated near an 8-year high. Prices Support near the 10-day moving average that comes in near $1,911. Resistance is seen near the January 2021 highs at 1,969. Short-term momentum has reversed and turned positive as the fast stochastic generated a crossover buy signal.

The medium-term momentum is positive as the histogram prints positively with the MACD (moving average convergence divergence). The trajectory of the MACD histogram is decelerating, which likely points to a period of consolidation.