Gold Price Forecast: XAU/USD bounces off 200-DMA to regain $1,850, US inflation eyed

• Gold Price rebounds in tandem with risk sentiment, regains $1,850.
• US dollar resumes corrections alongside the Treasury yields.
• XAU/USD remains a ‘sell the bounce’ trade amid Fed’s hawkish outlook.

Gold Price is looking to extend its recovery from three-month lows of $1,836 in the European session, as it recaptures the psychological $1,850 barrier ahead of the critical US inflation data.

The recovery momentum in XAU/USD strengthens, as the US dollar index extends its pullback from above the 104.00 level, undermined by the relief rally seen across the global markets.

Hopes that consumer price inflation will likely peak in the US economy in April are offering a temporary reprieve to the market.

The ongoing retreat in the US Treasury yields from three-year peaks also adds to the weight on the dollar, aiding the Gold Price rebound.

The bright metal also stages a strong comeback after it manages to defend the critical 200-Daily Moving Average (DMA), aligned at $1,836.

Gold Price Technical levels on the daily chart

Sellers need a daily closing below the latter to extend the sell-off towards the February 10 lows of $1,822.

The next key support is seen at the $1,800 round figure, below which the February lows at $1,769 will be in focus.

The 14-day Relative Strength Index (RSI) is sitting just above the oversold region, allowing room for more declines.

Also read: Gold Price Forecast: XAU/USD eyes US inflation and daily close below 200-DMA

On the flip side, if gold bulls manage to defend the 200-DMA on a daily closing basis, then a rebound towards the previous week's low of $1,850 will be inevitable.

Further up, gold buyers will aim for Tuesday’s high of $1,865 on their way to the $1,900 mark.