Gold continues its attempts to settle above the resistance level at $1935.
Gold is testing the resistance level at $1935 despite the pressure from stronger dollar and rising Treasury yields.
The U.S. Dollar Index has recently moved towards the 100 level. These levels have not been visited since May 2020, when demand for the safe-haven dollar was very strong during the acute phase of the coronavirus crisis.
Currently, the U.S. dollar is moving higher due to rising Treasury yields, which remain well below the inflation rate in the U.S. Typically, a combination of strong dollar and high yields is bearish for gold. However, gold is supported by the significant demand for safe-haven assets amid rising geopolitical tensions.
While gold remained stuck in the $1915-$1935 range, VanEck Gold Miners ETF made an attempt to settle above the $39 level. Demand for gold mining stocks stays strong, so GDX would move above the $39 level and head towards the $40 level in case gold manages to settle above the resistance at $1935.
Gold remains stuck in the range between the support level at $1915 and the resistance level at $1935. Currently, gold is trying to settle above the high end of this range. RSI is in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
If gold gets above $1935, it will move towards the resistance at $1950. A move above this level will open the way to the test of the resistance at $1965.
On the support side, a successful test of the support at $1915 will push gold towards the next support level, which is located at $1900. If gold declines below this level, it will move towards the support at $1880.
For a look at all of today’s economic events, check out our economic calendar.
Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.