Yesterday gold prices reached a two-month high of $1,841/oz. The precious metal got a boost from a pullback in the US dollar amid retreating UST yields. As a result, investors’ interest in gold is on the rise.
The current turmoil in global capital markets has also lent support to gold prices. It seems that for the first time in many months, gold has won back its status as a defensive asset.
The technical picture shows that the next major support level for gold is $1,830. In case of a breakout, a rise to the $1,875 could be in the cards. A bearish scenario would be a drop below $1,830, which would open the door to $1,795.