Gold Price Forecast: What’s next for the bright metal?

• Mounting concerns related to the Russian invasion of Ukraine keep investors in cautious mode.
• Global stocks trade mixed, but government bond yields are on the rise.
• Gold Price is neutral, but technical signs hint at another leg lower.  

Gold Price heads into the US, opening trading at around $1,925 a troy ounce, retaining modest intraday gains in a risk-averse environment. The market’s mood is sour amid persistent tensions between Russia and Ukraine. Moscow attacks mounted over the weekend, and peace talks are a far chance now. That said, safe-haven assets are posting modest intraday advances, as financial markets seem to be on pause ahead of a new catalyst.

Asian and European indexes trade mixed, but government bond yields are up, with the yield on the US 10-year Treasury note up to 2.20% amid concerns inflation will keep on rising, regardless of central banks’ measures. Oil prices resumed their advances after Russia’s Deputy PM Novak said crude price might rise to $300 a barrel if Russian oil is shunned, but that's unlikely. Gold Price may recover the upside should the news hit Wall Street.

Also read: Commodity traders eye big gains as Fed risks another recession – What’s next? [Video]

XAUUSD Technical Outlook

XAUUSD is stuck around the 50% retracement of the January/March rally, with increased bearish potential. The bright metal is meeting sellers around a flat 20 DMA, while the daily Momentum heads firmly lower within negative levels.

Gold price bottomed last week at $1,895 a troy ounce, just ahead of the 61.8% retracement of the mentioned rally at $1,890.60, a critical support level. On the other hand, the 38.2% retracement comes at around $1,960, where selling interest has proved strong.

Technicals hint at a decline, while fundamentals hint at an advance. The aforementioned Fibonacci levels are critical as XAUUSD could find its way on a clear break of any of those.