Gold bugs need correction in stocks on geopolitical risk for break of weekly resistance

• Gold: up to the weekly resistamce line and awaits a drop in stock prices. 
• Gold: bulls eye $1,433.00.70 on the wide as geopolitical risks spell war on the horizon. 

Gold has spiked on the latest geopolitical concerns that have sent risk sour. Gold bugs are just waiting for the stock markets to fall out from a stubborn period of consolidation causing the US yields to remain relatively robust. Nevertheless, Gold has picked up a safe haven bid to a key technical level on the sounds of the drums of war as Russia and US relations start to break down. Gold is currently trading at $1,354/oz having made a high of $1,365.33/oz vs a low of $1,338.60/oz. 

The Trump administration has been working to marshal international support for a possible military strike against Syrian President Bashar al-Assad for an alleged chemical-weapons attack, a move that is rubbing the Russians up the wrong way who have warned and pleaded the US to refrain from military intervention or be prepared for retaliation.

"I would once again beseech you to refrain from the plans that you're currently developing," Moscow's UN envoy Vasily Nebenzia said on Tuesday.

He warned Washington that it will "bear responsibility" for any "illegal military adventure" it carries out.

President Donald Trump tweeted today that the relationship with Russia“is worse now than it has ever been, and that includes the Cold War":

Russia vows to shoot down any and all missiles fired at Syria. Get ready Russia,  because they will be coming, nice and new and “smart!” You shouldn’t be partners with a Gas Killing Animal who kills his people and enjoys it!

Risk-off play is on the rise with a big spike in gold and WTI is making fresh YTD highs. However, stocks are climbing, (lead by tech stocks), and that is making for higher US yields, (US 10yrs  -0.32% but at 2.7936%, up from 2.7534% low and below 2.8027% high) for now. 

Gold levels

Bulls eye a test of $1366 level (YTD high) with $1,433.00.70 as next key target, 17th Aug weekly highs. For the near term, the techncial indicators are showing tiring signals althoughthe daily indicators marry up with te move and RSI turns towrads the 70 mark. However, on the downside, the $1,349 area guards the $1340 support area. The 21-D SMA supports at $1,331.934 while the price of the yellow metal keeps above the ascending 21-W SMA at $1312 at least.