Gold Price Forecast: XAU/USD remains under selling pressure above $1,900 amid the stronger USD

Gold price attracts some sellers around $1,915 amid the USD demand.
Most Fed officials still expect the additional rate rises later this year, which weigh on gold price.
Market players await the US growth number and the Core Personal Consumption Expenditure (PCE) Price Index.

Lallalit Srijandorn FXStreet

Gold price (XAU/USD) struggles to gain around $1,915 during the early Asian session on Tuesday. Gold price is weighed by a rally in US Dollar (USD) and US higher yield.
Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, hovers around 105.95 after retreating from the highest level since November of 106.09 amid the higher for longer narratives in the US. Additionally, the 10-year yield climbed to 4.53%, a level not seen since October 2007.

Most Fed officials still expect the additional rate to rise later this year. The Federal Reserve Banks of Boston and San Francisco Presidents, Susan Collins and Mary Daly, emphasized that although inflation is cooling down, additional rate hikes would be necessary. While the Chicago Fed President Austan Goolsbee said that a soft landing is possible, inflation risks remain tilted to the upside and the Fed should have 100% commitment to returning inflation to 2%. It’s worth noting that rising interest rates raise the opportunity cost of investing in non-yielding assets, implying a negative outlook for XAU/USD.

Moving on, the US Gross Domestic Product (GDP) Annualized for the second quarter will be due on Thursday. The closely watched event this week will be the Core Personal Consumption Expenditure (PCE) Price Index, the Fed's preferred measure of consumer inflation, due on Friday. The annual figure is expected to drop from 4.2% to 3.9%. Market players will take cues from these figures and find a clear direction in XAU/USD.

XAU/USD technical outlook

On the one-hour chart, gold price holds below the 50- and 100-hour Exponential Moving Averages (EMAs), which mean the past of least resistance is to the downside. Meanwhile, the Relative Strength Index (RSI) is located in bearish territory below 50, activating the bearish momentum for gold price.

Resistance level: $1,925, $1,945 and $1,970
Support level: $1,900, $1,885 and $1,865

XAU/USD

Overview
Today last price	1916.49
Today Daily Change	-8.77
Today Daily Change %	-0.46
Today daily open	1925.26

Trends
Daily SMA20	1925.97
Daily SMA50	1930.03
Daily SMA100	1942.27
Daily SMA200	1925.57

Levels
Previous Daily High	1929.16
Previous Daily Low	1919.52
Previous Weekly High	1947.47
Previous Weekly Low	1913.95
Previous Monthly High	1966.08
Previous Monthly Low	1884.85
Daily Fibonacci 38.2%	1925.48
Daily Fibonacci 61.8%	1923.2
Daily Pivot Point S1	1920.13
Daily Pivot Point S2	1915.01
Daily Pivot Point S3	1910.49
Daily Pivot Point R1	1929.77
Daily Pivot Point R2	1934.29
Daily Pivot Point R3	1939.41

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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