We’re seeing the high today hit near $1,982 before easing back to $1,978 on the day, still up 0.2% currently. That sees gold now move close to testing the June and July highs around $1,983-87 and that represents the next key technical hurdle before we get to the $2,000 mark.
Gold (XAU/USD) daily chart
The lows earlier this month coincided with the 200-week moving average for gold, before the Israel-Hamas conflict triggered a sharp reversal in price action that even broke back above the 100 (red line) and 200-day (blue line) moving averages this week.
And the most resilient thing about gold right now is that it is still largely gaining against the backdrop of surging Treasury yields. Typically, that has been a key negative factor for gold and more so if you think about the notion of 5% yields in 10-year Treasuries.
As the weekend approaches and the geopolitical tensions continue to persist, it looks like gold might just stay underpinned once more – similar to last weekend. And so let’s see what sort of technical hurdles will buyers be able to crack this time around.