Gold Price Forecast: XAU/USD looks south towards $1,915 despite retreating Treasury yields

• Gold price remains offered despite risk-aversion, pullback in yields and the USD.
• Hawkish Fed’s outlook likely to dull gold’s appeal while Ukraine crisis to underpin.
• Gold Price Forecast: XAUUSD extends consolidation above $1,900.00.

Gold price is in the hands of sellers so far this Thursday, having settled almost unchanged on the day on Wednesday.

The hawkish Fed minutes unraveled the world’s most powerful central bank’s plans to pare the balance sheet and deliver a 50-basis points (bps) rate hike at its May meeting. The Fed’s aggressive stance is worrying investors, as it could cripple the economic growth while the Fed combats soaring inflation.

The sell-off in the techs and real estate stocks on Wall Street caused its Asian peers also to lean bearish, offering a heavy blow to the risk-on trades. Therefore, the haven demand for the US bond dragged the yields lower, invariably triggering a minor pullback in the US dollar.

With the Fed’s aggressive tightening plans in full swing, gold price is failing to benefit from the renewed weakness in the yields, as well as, the dollar. Gold price is also shrugging off any demand for it as a safe haven, as policy normalization remains a net negative for the bright metal in the longer run.

Markets also remain jittery amid the ongoing escalation in the Russia-Ukraine conflict following the Western sanctions against Russia’s war crimes in Ukraine. Attention now turns towards the speeches from the Fed policymakers Evans, Williams, Bostic and Bullard, which could have a significant impact on gold price in the coming days.

Gold Price Chart: Hourly 

Gold’s hourly technical picture shows that the price is eyeing a sharp drop towards the rising trendline support at $1,916.

The Relative Strength Index (RSI) is looking south below the midline, justifying the bias to the downside.

If the abovementioned support is breached, then a test of the $1,900 mark remains inevitable.

On the upside, immediate confluence resistance is seen around $1,925, where the 21 and 50-Hourly Moving Averages (HMA) close in.

The next critical upside target is seen near $1,928, where the 100 and 200-HMAs align.

Further up, the $1,930 round level could challenge the bearish commitments.

Gold Price: Additional levels to watch