Steady As Global Market Consolidate Moves Sparked By The Middle East Conflict

Gold is steady in the Asia-Pac session, after closing little changed on Tuesday at $1860.40.

• Bullion is dealing near the highest level this month after the conflict in the Middle East drew haven demand.
• The recent surge in precious metal prices can also be attributed to an emerging change in the sentiment regarding the Federal Reserve's policy outlook. There is a growing consensus among US policymakers that the recent spike in US Treasury yields, which reversed course on Monday, could potentially serve as an alternative to implementing further hikes in the Fed funds rate. It's worth noting that higher interest rates typically have a negative impact on gold, which doesn't yield interest.
• According MNI’s technicals team, the bearish theme in gold was put on pause Monday after a second session of gains. Monday’s bounce put prices back above $1850. Nonetheless, the recent sell-off resulted in a break of support at $1901.1 and this was followed by a breach of $1884.9, the Aug 21 low. This confirmed a resumption of the downtrend that started early May. The focus is on $1804.9, the Feb 28 low and a key support. On the upside, firm resistance is at $1878.2, the 20-day EMA.