Gold Price Forecast: XAU/USD extends slide toward $1,830 ahead of Powell’s testimony

• Market participants await the release of Fed Chair Powell's opening statement.
• US Dollar strengthens while Treasury yields remain steady.
• XAU/USD corrects further to the downside after being rejected from above $1,850.

Gold prices dropped further ahead of Federal Reserve Chair Jerome Powell's testimony on Capitol Hill as the US Dollar strengthened. XAU/USD bottomed at $1,831/oz, the lowest level since Thursday. Price remains near the lows, moving with a bearish bias.

Federal Reserve Chairman Jerome Powell will testify before the Senate Banking Committee at 15:00 GMT, but his initial remarks are expected to be released earlier. Ahead of that, the US Dollar is rising across the board while US yields stay steady.

Jerome Powell Speech Preview: Fed Chair testifies in US Congress

The US 10-year yield stands at 3.94% and the 2-year at 4.87%. Wall Street futures point to a positive opening with modest gains. Despite steady yields and marginally higher stocks, Gold is under pressure. Silver is also falling, at a more pronounced pace. XAG/USD bottomed at $20.65, the lowest level in a week, and it traded at $20.68, down 1.66% for the day.

On Monday, XAU/USD peaked at $1,858 the highest level since February 15 but it failed to hold above $1,850 and also dropped back under the 20-day Simple Moving Average. The immediate support stands at $1,830 followed by the $1,820 zone. On the upside, Gold would recover strength above $1,845. The next key resistance is located around $1,860.

Technical levels