$1,900/oz Holds On First Test

Gold bulls run out of steam at $1,900/oz, at least on the first test, after showing above the 50-day EMA ($1,897.0/oz) and the 3.0% 10-dma envelope ($1,899.7/oz) in the process.

• Still, gold remains underpinned by geopolitical worry centered on fears of escalation in the Israeli-Palestinian conflict, while a move off best levels for the broader USD will be providing some tailwinds in the background.
• A sustained break above $1,900/oz would expose a bit of a technical air pocket, with little in the way of meaningful levels seen until key resistance in the form of the Sep 1 high ($1,953.0/oz).
• A reminder that continued central bank purchases have provided background flow support, while known ETF holdings of gold have ticked off cycle lows in recent days, as bullion rallied.