Gold Tests Resistance At $1950 As Demand For Safe-Haven Assets Stays Strong

Key Insights

• Gold attempts to move higher amid rising geopolitical tensions. 
• Gold markets ignore rising yields and stronger U.S. dollar, which indicates that demand for the safe-haven gold is strong. 
• A move above $1950 will push gold towards the resistance level at $1965.

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

Gold  is trying to settle above the resistance level at $1950, while Treasury yields are testing new highs.

The yield of 10-year Treasuries has recently managed to settle above the 2.75% level and is trying to move towards the 2.80% level. Longer-term yields have been rising fast in recent weeks, which was bearish for precious metals.

However, gold bulls ignored higher yields as they focused on rising geopolitical tensions. Demand for the safe-haven U.S. dollar has also increased, but stronger dollar failed to put any pressure on gold markets.

Not surprisingly, VanEck Gold Miners ETF managed to settle above $39.50 during the previous trading session and looks ready to test yearly highs near $40.25. In case gold manages to settle above the resistance at $1950, VanEck Gold Miners ETF should gain strong upside momentum and move to new highs.

Technical Analysis

Gold is testing the resistance level at $1950. In case gold manages to settle above this level, it will move towards the next resistance at $1965. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

A successful test of the resistance at $1965 will push gold towards the next resistance level, which is located at $1975. If gold gets above this level, it will move towards the resistance at $2000.

On the support side, the nearest support level for gold is located at $1935. In case gold moves back below this level, it will settle in the $1915 – $1935 range. A move below the support at $1915 will push gold towards the next support level at $1900.

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