Gold Prices Stuck Between Dollar Support and Bond Resistance
Gold prices are struggling to break through key resistance levels as the 30-year yield hits a 19-year high. The price of gold is currently trading at around $4449.83, but traders are finding it difficult to push through this level and reaffirm the uptrend. If the trend changes to down, the retracement zone between $4195.96 and $4136.05 will become the primary target zone.
The long-term range for gold is between $4891.54 and $3942.10, with the 50% level at $4416.82 providing resistance for six straight sessions. The 200-day moving average at $4507.45 is also acting as a barrier to further gains. Bulls are hoping for a breakout over this indicator to draw in institutional investors.
The bond market is driving gold prices, with the long end of the curve refusing to let gold break through resistance levels. The FOMC minutes on Wednesday will provide key insight into the committee's views on inflation and interest rates. If the committee shows concern about inflation, it could lead to higher interest rates and a stronger dollar, making gold more expensive.