“Gold Prices Holding Steady Despite Negative Sentiment and Rising Yields”

Investing.com – Gold’s bullish trend remains intact — to an extent.

Both gold futures and the spot price of bullion remained below the key $2,000 an ounce level on Wednesday as the Biden administration expressed optimism that the White House could raise the public debt ceiling by the end of the week in negotiations with rival congressional Republicans. Gold is seen as a hedge against economic and political problems.

Yields also rose, putting more pressure on gold.

Despite the negative sentiment prevailing on gold for a second day after its first drop below $2000 in two weeks, the yellow metal kept away from breaking the $1,975 support level which technical analysts said would be crucial to regaining its bullish momentum.

“If the price drops below $1,975, the way is open for $1965 and even $1942,” said Sunil Kumar Dixit, chief technical strategist at SKCharting.com. “As long as it stays above this level, there is a chance of a return to $2,000 in the not too distant future.”

Comex in New York settled at $1,984.90 an ounce, down $8.10, or 0.5%, after a session low of $1,978.35. On Tuesday, gold for the month of June was down $29.70, or 1.5%. Gold futures hit an all-time high of $2,085.40 on May 4.

The index, which reflects physical trading in bullion and is followed closely by some traders, was at $1,983.49 by 13:40 ET (17:40 GMT), down $5.46, or 0.3%. Spot gold hit a record high of $2,073.29 earlier this month, according to Investing.com data.