Gold Price Forecast: XAU/USD points south to $1,900 amid ongoing downbeat momentum
|Gold price is heavy so far this Tuesday’s trading, meandering near weekly lows below $1,940 amid a mixed market mood. Focus is on Tuesday’s close as the yellow metal breaches critical daily support levels, eyeing monthly lows near $1,900, FXStreet’s Dhwani Mehta reports.
Ukraine crisis, hawkish Fed expectations to underpin the DXY, down gold price
“The ongoing uptrend in the US Treasury yields keeps the bearish pressures intact on the non-interest-bearing gold. Hawkish Fed’s expectations underpin the global borrowing costs while lending support to the US dollar.”
“The Russia-Ukraine war is likely to come to end by early May, according to the Ukrainian Presidential adviser Oleksiy Arestovich. The uncertainty amid prolonged diplomatic talks will leave investors scurrying for safety in the greenback while exerting downward pressure on gold.”
“A daily closing below the $1,955 critical daily trendline support will open doors for a drop towards the March lows of $1,902 should the 21-DMA at $1,934 give way on a sustained basis.”
“Recapturing the trendline support now resistance at $1,955 is critical to initiating a meaningful recovery towards the $2,000 mark. The next relevant stop for bulls is seen at the March 10 highs of $2,009. Further up, a fresh upswing towards the psychological level of $2,050 cannot be ruled out.”
See – Gold Price Forecast: XAU/USD vulnerable to a more hawkish Fed – TDS
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