Gold Price Forecast: XAU/USD may drop to support near low $1,900s – TDS

FXStreet Insights Team FXStreet

Price pressures seem to be very sticky and the economy is showing little weakness. Therefore, Gold could remain under downside pressure, economists at TD Securities report.

Fed could hike more than the market has priced

“The concern that prices will not drop as fast as the US central bank desires have prompted a sharp correction in recent days, with the risk that Gold may drop to support near low $1,900s, should the 100-DMA support be breached.”

“Notwithstanding our longer term positive Gold view, the short run represents downside risk, if the economy stays firm.”

“Inflation is not moving down slower, it rose. This may well prompt the Fed to hike more than the market has priced and may be bad news for longs and Gold prices”.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD turns south toward 0.6900 as USD firms up

AUD/USD sees fresh selling and drops toward 0.6900 in late Asian trading on Monday, as renewed US Dollar strength weighs on the pair amid lingering Middle East and Russia-Ukraine geopolitical tensions. Focus remains on Oil prices, Treasury bond yields, and RBA expectations for fresh trading impetus in the major.

USD/JPY retakes 158.00 amid hawkish BoJ bets, firmer USD

USD/JPY erases losses and retakes 158.00 in the Asian session on Monday, trading within a one-week-old range. Geopolitical uncertainty continues to underpin the US Dollar, despite fading Fed rate hike hopes, supporting the pair's rebound. However, further upside could be capped by hawkish BoJ expectations and looming intervention risks that could support the Japanese Yen.

Gold extends its struggle below $4,200

Gold clings to recovery gains near $4,150 early Monday, maintaining last week’s range. US Dollar reverts to 17-month highs despite receding Oil prices, Treasury yields, and Fed rate hike bets. Gold’s technical picture appears skewed to the downside in the near term.

Why the US Dollar keeps climbing despite weaker jobs data

The US Dollar’s (USD) rally remained everything but abated, climbing for the third consecutive week and reaching levels last seen in April 2025. The move higher came on the back of a mixed performance in US Treasury yields, extending their rally in the belly and long end of the curve while losing some momentum at the short end.

WTI drops to near $89.00 as G7 taps emergency reserves

West Texas Intermediate oil price extends its losses for the second successive day, trading around $89.30 during Asian hours on Monday. Crude oil prices experienced a decline after G7 nations agreed to release 100 million barrels of crude and diesel from emergency reserves, pledging to avoid energy export restrictions following pressure from US President Donald Trump.

The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.