Gold Price Forecast: XAU/USD attacks $1,850 amid firmer yields, focus shifts to Fed

• Gold Price remains heavy amid firmer yields, ignore USD correction.
• Treasury yields hold at three-year highs on hawkish Fed expectations.
• US Factory Orders, JOLTS job openings eyed for fresh impetus.

Gold Price is trading in close proximity to fresh three-month lows just above $1,850, as sellers remain in charge despite the broad pullback in the US dollar from multi-year peaks. The US Treasury yields stabilize at the highest level in over three-year, keeping the downside pressure intact on the non-interest-bearing gold price.

The yields remain elevated, as investors remain hopeful for an aggressive stance from the Fed, as the world’s most powerful central bank is expected to raise the key rates by 50 bps on Wednesday. The central bank is also likely to begin trimming its balance sheet. The benchmark 10-year Treasury yields hit the highest since December 2018 at 3.004%, earlier on.

Further, demand concerns from the world’s biggest gold consumers, China and India, are also collaborating with the ongoing downtrend in the metal. China is grappling with the worst covid outbreak since Wuhan, which has forced the biggest cities back under lockdowns, hitting the demand for gold coins and bars.

Meanwhile, India’s appetite for gold has reduced due to the recent surge in prices, courtesy of the Russia-Ukraine war-driven safe-haven demand.

Also read: Gold Price Forecast: XAU/USD bulls could come up for last dance ahead of Fed

Looking ahead, the sentiment around the yields and the dollar will continue to have a significant bearing on gold price, as all eyes remain on the Fed decision for the next directional move.

In the meantime, the US Factory Orders and JOLTS job openings data will offer some fresh incentives to gold traders.

Gold Price technical levels to consider