Gold Price Forecast: XAU/USD remains exposed to downside risks below $1,994

Gold stays under bearish pressure at the beginning of the week and trades deep in negative territory below $1,980. As FXStreet’s Dhwanie Mehta notes, XAU/USD appears vulnerable below $1,994 confluence resistance.

Risk trends will continue to lead the way

“Should risk aversion intensify in the upcoming sessions, the US dollar Index is likely to benefit further and regain 100.00 vs. major rivals. Gold price, therefore, appears vulnerable, also undermined by the ongoing rout in the US Treasuries.”

“On selling resurgence, gold sellers could retest Friday’s low of $1,959, below which a test of the $1,950 psychological barrier will be inevitable. The next relevant support awaits at the ascending 100-SMA at $1,943.”

“Recapturing 50-SMA at $1,979 on a sustained basis is critical to initiating any meaningful recovery towards $1,994, which is a powerful resistance. Acceptance above the latter will open doors towards the $2,000 mark, beyond which the $2,010 supply zone will be challenged once again.”