Gold Tests Resistance At $1915 As Dollar Remains Under Pressure

Key Insights

• Gold continues to move higher as the U.S. dollar pulls back from yearly highs. 
• Treasury yields remain below recent highs, which is also bullish for gold markets. 
• A move above $1915 will push gold towards the 50 EMA at $1920.

Gold Gains Ground Ahead Of The Weekend

Gold is currently trying to settle above the resistance at $1915 as the U.S. dollar continues to pull back from recent highs.

Yesterday, the U.S. Dollar Index made an attempt to get to the test of the 104 level. This attempt was not successful, and the U.S. Dollar Index pulled back towards the 103 level, which was bullish for gold and other precious metals.

Meanwhile, Treasury yields remained mostly stable, which also provided support to gold markets. Higher yields are bearish for gold that pays no interest.

As gold began to rebound, VanEck Gold Miners ETF received support and managed to settle back above the $35 level. Today, VanEck Gold Miners ETF will likely have a chance to test the $36 level as gold markets gained solid upside momentum.

Technical Analysis

Gold is testing the resistance level at $1915. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

A move above $1915 will lead to the test of the 50 EMA, which is located at $1920. In case gold manages to settle above the 50 EMA, it will head towards the resistance at $1935, although it can also face some resistance near the 20 EMA at $1930. A successful test of the resistance at $1935 will push gold towards the next resistance at $1950.

On the support side, the previous resistance at $1900 will serve as the first support level for gold. If gold declines below this level, it will head towards the next support level at $1890. A move below $1890 will push gold towards the support at $1880.

For a look at all of today’s economic events, check out our economic calendar.