Gold Price Analysis: XAU/USD probes $1800 level, eyes annual lows around $1780 as risk events loom

• Gold fell briefly back below $1800 again on Monday to hit fresh multi-week lows as traders mull upcoming risk events.
• Bears continue to eye a test of annual lows around $1780 against the backdrop of a still buoyant buck.

Spot gold (XAU/USD) prices briefly fell back below the $1800 per troy ounce level on Monday to hit fresh multi-week lows, though have since entered into a consolidation pattern on either side of the big figure. At current levels just above, the precious metal is trading with losses of over 0.5% on Monday, marking a continuation of recent weakness since XAU/USD dipped below its 200-Day Moving Average (in the $1830s) last week.

Earlier in the session, XAU/USD event dipped as low as the $1780s for the first time since early February this year and the bears are eyeing a test of annual lows around the $1780 level. Weak Chinese data for April released over the weekend put fears about global growth back in the spotlight and this seemed to weigh on global risk appetite a tad, though not enough to support the safe-haven precious metal.

Key upcoming risk events this week, which include remarks from NY Fed President and influential FOMC member John Williams later on Monday ahead of the release of the April US Retail Sales report ahead of comments from Fed Chair Jerome Powell on Tuesday, are likely keeping gold traders on the defensive. Fed policymakers have signaled that they are unanimously on board with rapid policy tightening in the coming quarters as the US economy continues to suffer from sky-high inflation.

Hawkish expectations for Fed policy against a backdrop of concerns about weakening global growth have supported the US dollar as of late, with the DXY on Monday trading just below multi-decade highs in the mid-104.00s. Dollar strength has been a key factor hurting gold as of late, given a strong buck means it's more expensive for the holders of international currency to buy USD-denominated commodities.