Gold prices consolidated on Tuesday despite an uptick in U.S. yields following comments from Fed Chair Yellen that were hawkish. Prices of the yellow metal dipped below support near the 10-day moving average but were able to rebound and settle slightly higher on the session. Resistance is seen near the February highs at 1,244. Momentum has turned negative as the MACD (moving average convergence divergence) index recently generated a crossover sell signal. The RSI is barely changed reflecting consolidation, as it is printing at 61, which is the upper end of the neutral range.
U.S. 10-year yields popped higher following Yellen’s bi-annual testimony in front of the Senate Banking Committee. The Fed chair was relatively hawkish telling traders that every meeting is live. U.S. yields moved higher recapturing the 2.47 level, which is the 50-day moving average.