Gold Price Analysis: XAU/USD faces stubborn resistance at the $1896 50-DMA

Gold price holds steady below $1900, sticking to the range play. In the view of FXStreet’s Dhwani Mehta, XAU/USD is set to extend range play near $1900, with focus on US inflation.

See – Gold Price Analysis: XAU/USD set to move lower in the near-term – OCBC

Gold to remain at the mercy of the sentiment around the US dollar and T-yields

“Gold’s range play near $1900 is likely to extend amid subdued trading action in the US dollar and Treasury yields, as the market switches to a wait-and-see mode ahead of the all-important US CPI data and ECB monetary policy announcement due on Thursday. The US inflation data could offer hints on when the Fed would scale back the monetary stimulus while the ECB is seen reviewing the pace of the emergency bond-buying program, which was boosted back in March.”

“Looking ahead, the sentiment around the greenback and yield will remain the key driver for gold price, as investors also keep an eye on stimulus and US-China updates.”

“The 50-simple moving average (SMA) at $1896 remains a tough nut to crack for the gold bulls. Meanwhile, the downside is likely cushioned by the confluence of the triangle support, 100 and 21-SMAs at $1889.”

“Only a sustained break above the 50-DMA resistance could drive the buyers back towards the $1900 mark. Alternatively, a downside break from the symmetrical triangle will get validated on a firm break below the fierce $1890 support area, exposing the horizontal trendline hurdle at $1883.”