Gold Price Forecast: XAU/USD pulls back to near $2,310 from the fresh highs

Gold price retreats from the new record high of $2,330 marked on Friday.
The price of Gold faces challenges due to lowered chances of Fed rate cuts in June.
US Nonfarm Payrolls added 303K new jobs in March, exceeding the expected 200K.

Akhtar Faruqui FXStreet

Gold price drops to near $2,310 per troy ounce during the Asian session on Monday after touching a new record high on Friday. The price of precious metal faces challenges primarily due to higher US Treasury yields, which weakens the non-yielding assets.

The recent gains in the US Dollar exert downward pressure on the price of Gold, making it more expensive for investors holding other currencies to purchase Gold. This decreases demand for the precious metal.

The US Dollar Index (DXY) trades higher around 104.40, with the 2-year and 10-year yields on US Treasury bonds standing at 4.77% and 4.42%, by the press time. The stronger Nonfarm Payrolls (NFP) report reinforces the bullish outlook for the Greenback. According to the CME FedWatch Tool, the likelihood of a rate cut in June from the Federal Reserve (Fed) has been depreciated to 46.1%.

US Nonfarm Payrolls (NFP) reported a significant increase of 303,000 jobs in March, surpassing expectations of 200,000. However, the previous growth of 275,000 was revised downward to 270,000.

Federal Reserve Bank of Dallas President Lorie K. Logan emphasized on Friday that, given the upside risks to inflation, she believes it is premature to consider cutting interest rates. She stressed the necessity of resolving more uncertainty regarding the economic trajectory before making such decisions. Logan also highlighted the importance of the Federal Open Market Committee (FOMC) to remain ready to respond appropriately if inflationary pressures cease to abate.

XAU/USD

Overview
Today last price	2313.6
Today Daily Change	-16.10
Today Daily Change %	-0.69
Today daily open	2329.7

Trends
Daily SMA20	2204.89
Daily SMA50	2107.81
Daily SMA100	2068.32
Daily SMA200	1998.75

Levels
Previous Daily High	2330.55
Previous Daily Low	2267.86
Previous Weekly High	2330.55
Previous Weekly Low	2228.58
Previous Monthly High	2236.27
Previous Monthly Low	2039.12
Daily Fibonacci 38.2%	2306.6
Daily Fibonacci 61.8%	2291.81
Daily Pivot Point S1	2288.19
Daily Pivot Point S2	2246.68
Daily Pivot Point S3	2225.5
Daily Pivot Point R1	2350.88
Daily Pivot Point R2	2372.06
Daily Pivot Point R3	2413.57

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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