Gold Tries To Settle Below $1915 As Treasury Yields Test New Highs

Key Insights

• Gold is losing ground despite weaker U.S. dollar. 
• Traders stay focused on rising yields, but news from Russia – Ukraine negotiations may change the picture.
• A move below $1915 will push gold towards the 50 EMA at $1905.

Gold Remains Under Pressure

Gold continues its attempts to settle below the support level at $1915 as rising Treasury yields put pressure on precious metals.

The yield of 2-year Treasuries is currently trying to settle above 2.43%, while the yield of 10-year Treasuries is testing the 2.50% level. Short-term yields are rising fast, which is bearish for precious metals like gold and silver.

The pressure from rising Treasury yields is significant, and the recent pullback of the U.S. dollar failed to provide enough support to precious metals.

Traders will also have to follow news from Turkey, which hosts the new round of negotiations between Russia and Ukraine. Any positive news may put more pressure on the safe-haven gold.

Such news would also be bearish for VanEck Gold Miners ETF, which managed to settle below the $38 level during yesterday’s trading session. While tech stocks enjoy a strong rally, gold mining stocks have lost momentum in recent trading sessions, and it looks that rising yields are the key catalyst behind this weakness.

Technical Analysis

Gold is testing the support level at $1915. This support level has already been tested during yesterday’s trading session and proved its strength.

In case gold manages to settle below the support at $1915, it will head towards the next support level at the 50 EMA at $1905. A move below the 50 EMA will open the way to the test of the support at $1880. If gold declines below this level, it will head towards the next support at $1865.

On the upside, the nearest resistance level for gold is located at the 20 EMA at $1935. In case gold manages to settle back above the 20 EMA, it will head towards the resistance level at $1950. A move above this level will push gold towards the resistance at $1965.

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