Gold's Upswing Fueled by JOLTS Data as US 2-Year Yield Slips Below 5%: Could $1,950 Pose Significant Resistance?
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- Gold buoyed by JOLTS data
- US 2-year yield slipped below 5%
- Could $1,950 be a major level of resistance?
Gold made decent gains on Tuesday, buoyed by a softer dollar and lower yields on the back of the US JOLTs data.
The US 2-year yield slipped back below 5%, while the greenback has come off its highs to trade down on the day.
The summer narrative of higher yields for longer that has lifted the dollar and longer-term yields at the expense of the yellow metal could be put to the test this week with GDP, inflation, jobs, and PMI releases all still to come.
It’s started well for gold but it may still have a mountain to climb after coming under significant pressure since late July.
While yesterday’s recovery was encouraging, it is still in retracement territory so it may be too early to get carried away.
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The key level at this stage may be $1,950 with it falling around the 61.8% Fibonacci retracement level – July highs to August lows – and the top of the 55/89-day simple moving average band.
A move above this may suggest there’s more to the recent gains since the rebound off the 200/233-day SMA band. That said, a rebound lower now could see that prior support come under pressure and a break of that could be very bearish.
