Gold prices continue to trade in positive territory above $1970 during the US session on Tuesday. As US stocks traded mixed, benchmark 10-year US Treasury yields fell off session highs and gave XAU/USD a boost.

Concerns about the banking sector have led to a move to safe-haven assets, and the Fold has clearly benefited from this. While economists at ING see near-term price declines, we expect these to pick up in the second half of the year.

Fed policy will support Gold at the end of the year

“Fed policy is likely to be key for Gold in the medium term. We see a last 25 bps increase in May, which would leave Fed funds hovering at 5-5.25%. Subsequent rate cuts will likely be the subject of the second half of 2023 and we see the Fed cut by 75 basis points in the fourth quarter. We expect real yields to fall in line with policy rates later in the year, which should support Gold prices.”

Support level: 1,944.00 1,932.65 1,921.80

Resistance: 1,962.30 1,974. 40 1,988.30

Trading recommendation:

Gold SELL 1972 - 1974

Stoploss : 1980

Take profit 1: 1980
Take Profit 2: 1975
Take profit 3: 1970

Buy GOLD 1927 - 1928

Stop Loss: 1924

Take profit 1: 1935
Take Profit 2:1940
Take profit 3: 1945

Note: Always install Stoploss and Takeprofit to ensure safety in trading