Gold prices have pulled back from recent record highs, primarily due to rising US Treasury yields and a potential de-escalation of geopolitical tensions in the Middle East.
Key Factors:
- Rising US Treasury Yields: Higher US Treasury yields have reduced the appeal of non-yielding assets like gold.
- Geopolitical Tensions: While tensions in the Middle East remain elevated, there are signs of potential de-escalation, which could reduce safe-haven demand for gold.
- Economic Outlook: The outlook for the global economy, particularly the US, remains uncertain, which could impact gold’s price.
Technical Analysis:
- Upward Trend: Despite the recent pullback, the overall trend for gold remains bullish.
- Resistance Levels: The $2,790 level is a key resistance level.
- Support Levels: The $2,758 and $2,708 levels are potential support levels.
