Gold Price Forecast: XAU/USD faces resistance around $1,960 as US banking jitters ease, Yields soar

Gold price is sensing barricades around $1,960.00 as fears of US banking turmoil have eased.
Appeal for Gold and US government bonds as safe-haven amid US banking jitters has trimmed dramatically.
Risk appetite is improving further on hopes that US banking recovery will be faster.

Sagar Dua FXStreet

Gold price (XAU/USD) is juggling below $1,960.00 in the early Asian session. The upside for the Gold price seems restricted as fears of the United States banking debacle have eased. Therefore, investors have liquidated their positions in Gold and US government bonds, which were considered safe-haven amid banking jitters.

On Monday, First Citizens BancShares said it would take on the deposits and loans of failed Silicon Valley Bank (SVB). The news came after Bloomberg reported that US authorities are looking to expand the emergency lending facility for small banks amid turbulent times. Back-to-back supportive headlines for the US banking system infused confidence among the market participants.

Meanwhile, S&P500 futures are showing nominal gains after a bullish Monday on hopes that US banking recovery will be faster and chances of banking turmoil like the 2008 financial crisis are extremely lower. Easing US baking jitters impacted the demand for US government bonds heavily. This led to a perpendicular rise in 10-year US Treasury yields to 3.54%.

The US Dollar Index (DXY) has corrected to near 102.83 as hopes for a sooner conclusion of the rate-hiking spell by the Federal Reserve (Fed) are escalating.

Fed Governor Philip Jefferson cited on Monday, “Inflation ‘should fall back’ toward the Fed's 2% target as higher interest rates discourage spending in interest-rate sensitive sectors of the economy like housing,” as reported by Reuters. He further added, would like to say inflation will return to 2% soon, but have to avoid damaging the economy ‘any more than is necessary’.

Gold technical analysis

Gold price has shown a sheer fall after forming a Double Top chart pattern on an hourly scale plotted from March 23 high at $2,003.37. The precious metal re-tested critical resistance with less buying strength, which triggered aggressive selling from responsive sellers. Gold price is declining towards the horizontal support placed from March 15 high at $1,937.39. The yearly high is placed from March 20 high at $2,009.88.

The 20-period Exponential Moving Average (EMA) will continue to act as a barricade for the Gold bulls.

Meanwhile, the Relative Strength Index (RSI) (14) is making efforts in shifting its range to 40.00-60.00.

Gold hourly chart

XAU/USD

Overview
Today last price	1957.72
Today Daily Change	-19.73
Today Daily Change %	-1.00
Today daily open	1977.45

Trends
Daily SMA20	1892.66
Daily SMA50	1887.93
Daily SMA100	1840.48
Daily SMA200	1780.47

Levels
Previous Daily High	2003.07
Previous Daily Low	1975.28
Previous Weekly High	2009.88
Previous Weekly Low	1934.34
Previous Monthly High	1959.8
Previous Monthly Low	1804.76
Daily Fibonacci 38.2%	1985.9
Daily Fibonacci 61.8%	1992.45
Daily Pivot Point S1	1967.46
Daily Pivot Point S2	1957.48
Daily Pivot Point S3	1939.67
Daily Pivot Point R1	1995.25
Daily Pivot Point R2	2013.06
Daily Pivot Point R3	2023.04

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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