Probing Next Resistance

Gold shows above $2,020/oz, with fresh multi-month highs registered in the process.

• Headlines re: a breach of the Israeli-Hamas ceasefire via detonations near IDF troops in northern Gaza may have fed into gold via geopolitical risk premium channels, although a lack of definitive cross-market reaction muddies that a little.
• U.S. Tsy yields moved off session highs, providing support for gold, before ticking higher once again (two-way oil swings also factored in there).
• Mix U.S. housing market data was also seen in this period.
• Meanwhile, the broader USD came under some light pressure as Tsys moved off yield highs, also supporting bullion, before paring some of that move.
• The paring of those gold-supportive moves limits the move in the yellow metal, at least for now.
• With key resistance left behind bulls looked through the May 15 high ($2,022.2/oz), the immediate level of technical interest, showing as high as $2,023.8/oz. A clean break higher would expose the May 10 high ($2,048.2/oz)