Gold Price Forecast: XAUUSD to cheer bearish traders on a break below $1,940/35

Gold is fluctuating in a narrow channel at around $1,950 on Thursday. As FXstreet’s Haresh Menghani notes, XAU/USD bears have the upper hand and a drop below the $1,940/35 region will reaffirm the negative bias.

Focus on yields/Fed’s Powell

“The market focus will remain glued to Fed Chair Jerome Powell's speech at an International Monetary Fund event later during the US session. This, along with the US bond yields, will influence the USD price dynamics and provide some impetus to the XAU/USD. Apart from this, fresh developments surrounding the Russia-Ukraine saga should contribute to producing short-term trading opportunities around gold.”

“A convincing break below the $1,940-$1,935 region will reaffirm the negative bias and make gold vulnerable. XAU/USD could then turn vulnerable to accelerate the fall towards the $1,916 intermediate support before eventually dropping to sub- $1,900 levels or March swing lows.”

“The $1,960 support-turned-resistance coincides with the 38.2% Fibonacci retracement level of the $2,070-$1,890 downfall and should act as a pivotal point. Sustained strength beyond has the potential to lift gold towards the 50% Fibo. level, around the $1,980-$1,982 region. The upward trajectory could further get extended and allow bulls to make a fresh attempt to reclaim the $2,000 round figure.”