Gold Price Forecast: Holding on to higher ground in a risk-averse environment

XAUUSD Current price: $1,928.01

• Stocks plunged, reflecting little hopes for a Russian-Ukrainian war's solution.
• US Federal Reserve chief Powell said he is open to raising the rate by more than 25 bps.
• XAU/USD is partially losing its bullish momentum, but sellers are nowhere to be found.

Gold Price holds ground around $1,925.00 a troy ounce, consolidating despite risk aversion picking up in the American afternoon. The bright metal has been confined to a tight range ever since the day started, trading between 1,921 and 1,938, although it posted a lower high and a lower low on a daily basis, somehow indicating decreased buying interest.

Elsewhere, stocks trade in the red. Wall Street opened higher but quickly changed course amid mounting tensions in the Russian-Ukrainian front, also dented by US Federal Reserve chief Powell. The leader of the central bank is testifying before Congress for a second consecutive day, redoubling his hawkish message, as per stating that he supports a 25 bps hike this month but added that they are prepared to "rise by more than that" in the upcoming meeting or meetings.

Gold Prices short-term technical outlook

The XAUUSD daily chart shows that gold is barely up on a daily basis but still well above bullish moving averages. The Momentum indicator retreated from overbought readings but holds well above its midline, while the RSI indicator consolidates around 66, hinting at absent selling interest.

In the 4-hour chart, the metal is holding a few cents above a bullish 20 SMA, although technical indicators are currently hovering around their midlines, the Momentum heading lower, and the RSI flat at around 52. Gold has an immediate support level at $1,912, but it seems unlikely it could extend its decline in the current risk-averse environment.

Support levels: 1,912.00 1,903.40 1,890.90

Resistance levels: 1,938.10 1,952.20 1,966-40

View Live Chart for the XAU/USD