Gold Price News and Forecast: XAU/USD came under strong bearish pressure in early American session
|Can gold prices hold above $1,800?
Gold prices hovered close to a one-week high on Wednesday, boosted by comments from Federal Reserve Chair Jerome Powell that the U.S. economy still needed support.
Powell told the U.S. Senate Banking Committee that monetary policy still needed to be accommodative with economic recovery "uneven and far from complete". His remarks indicated that the need for further monetary and fiscal expansion is unlikely to go away anytime soon.
A depreciating U.S. dollar, money-printing, low interest rates and the risk of inflation as a result of stimulus measures will continue to remain bullish drivers for gold.
Gold Price Analysis: XAU/USD drops below $1,800, next key support aligns at $1,780
The XAU/USD pair turned south in the early trading hours of the American session and dropped to a two-day low of $1,797. The sharp upsurge witnessed in the 10-year US Treasury bond yield provided a boost to the greenback and weighed on the pair. As of writing, XAU/USD was down 0.75% on the day at $1,792.50.
Gold technical outlook
With the latest decline, the Relative Strength Index (RSI) indicator on the four-hour chart dropped below 50, suggesting that the bearish momentum is building up in the near-term.
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