Gold Stays Range-Bound As Traders Wait For New Catalysts

Key Insights

• Gold attempts to move higher amid geopolitical uncertainty. 
• Meanwhile, rising Treasury yields may put some pressure on gold and other precious metals. 
• A move above the resistance at $1935 will push gold towards the next resistance at $1950.

Gold Is Trying To Gain Some Ground Despite Higher Treasury Yields

Gold has settled in the range between the support at $1915 and the resistance at the 20 EMA at $1935, while traders wait for the results of the new round of negotiations between Russia and Ukraine.

Gold continues its attempts to stabilize after the strong pullback which pushed it from $2070 to $1900. Geopolitical tensions serve as the main positive catalyst for gold, while the recent increase in Treasury yields is the leading bearish catalyst.

The yield of 2-year Treasuries has recently made an attempt to settle above the psychologically important 2.00% level. In case the yield of 2-year Treasuries manages to settle above this level, it will gain additional upside momentum, which will be bearish for gold and other precious metals like silver and platinum.

Technical Analysis

Gold received support near $1915 and is trying to gain additional upside momentum. In case this attempt is successful, gold will get to the test of the nearest resistance level, which is located at the 20 EMA at $1935.

A successful test of the resistance at $1935 will push gold towards the next resistance level at $1950. If gold climbs above this level, it will move towards the resistance level at $1975. A move above the resistance at $1975 will open the way to the test of the resistance at the psychologically important $2000 level.

On the support side, gold needs to settle below the support at $1915 to have a chance to continue its pullback. The next support level for gold is located near the 50 EMA at $1900. If gold manages to settle below the 50 EMA, it will gain additional downside momentum and move towards the support level at $1880.

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