Gold Price Forecast: XAU/USD set to defy the $1,832/34 resistance zone

Gold finally settled near the top end of its daily trading range and touched a fresh two-month high around $1,825 during the Asian session on Tuesday. In the view of FXStreet’s Haresh Menghini, the yellow metal seems poised to challenge the $1,832-34 supply zone.

US dollar drops despite downbeat Treasury yields, Fed Chair Powell’s speech eyed

“The risk-off impulse in the equity markets extended some support to the safe-haven XAU/USD amid a fresh leg down in the US Treasury bond yields. This, along with sustained USD selling bias, support prospects for additional gains, though traders preferred to wait for a fresh catalyst from the latest US consumer inflation figures.”

“Later during the early North American session, traders will take cues from the US economic docket – featuring the release of the Producer Price Index (PPI). Apart from this, Fed Chair Jerome Powell's remarks at an online conference will be looked upon for some short-term trading opportunities around gold.”

“Some follow-through move towards testing a strong barrier, around the $1,832-34 heavy supply zone, remains a distinct possibility.”

“Any meaningful pullback now seems to find decent support near the $1,808-07 region. A subsequent slide might still be seen as a buying opportunity near the $1,800 round-figure mark. This should help limit the corrective fall near the $1,790-86 region.”

See – Gold Price Forecast: XAU/USD set to dare the multi-month downtrend from all-time highs – TDS