Finally, investors have started to return to U.S. bond market to take advantage of high yields. That said, it remains to be seen whether pullback in yields will be sustainable.

U.S. dollar pulled back against a broad basket of currencies as traders focused on falling Treasury yields. Weaker dollar provided additional support to gold market in today’s trading session.

Interestingly, gold traders ignored the rally in the oil markets. Oil prices gained 2.5% amid escalation in the Middle East. I’d note that prices have moved away from session highs after President Trump said that U.S. would not attack Iran until midterm elections.

The nearest resistance level for gold is located in the $4160 – $4180 range. If gold climbs above the $4180 level, it will head towards the next resistance at $4300 – $4320.

On the support side, a move below the $4100 level will push gold towards the support at $4000 – $4020.