Gold Remains Stuck Below $1935 As Traders Wait For Catalysts

Key Insights

• Gold remains range-bound as Treasury yields pull back from recent highs. 
• Rising geopolitical tensions provide additional support to gold. 
• A move above the resistance at $1935 will open the way to another test of the resistance at $1950.

Gold Tries To Gain Some Ground At The Start Of The Week

Gold remains stuck in a tight $1915 – $1935 range, while the yield of 2-year Treasuries is moving lower after an unsuccessful attempt to settle above the 2.50% level.

The dynamics of Treasury markets remain the key driver for gold markets. Rising yields are bearish for precious metals like gold and silver as they pay no interest, while geopolitical tensions continue to serve as an important bullish catalyst for gold.

Meanwhile, demand for gold mining stcoks is rising. VanEck Gold Miners ETF managed to settle above the $39.00 level and made an attempt to settle above $39.50 despite gold’s failure to settle above the $1935 level.

This is an interesting development as it shows that traders believe that higher gold prices will be sustainable and that gold miners will have enough time to profit from them. A move above the $39.50 level will push VanEck Gold Miners ETF towards the psychologically important $40.00 level.

Technical Analysis

Gold continues its attempts to settle above the resistance level at $1935. If gold manages to settle above this level, it will move towards the next resistance level, which is located at $1950.

A move above $1950 will open the way to the test of the resistance at $1965. If gold gets above this level, it will head towards the next resistance level at $1975. In case gold settles above the resistance at $1975, it will head towards the resistance at $2000.

On the support side, the nearest support level for gold is located at $1915. This support level has been tested several times in recent trading sessions and proved its strength.

If gold declines below the $1915 level, it will test the 50 EMA which is located near $1905. A move below this level will push gold towards the next support level at $1880.

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