Gold Price Forecast: XAU/USD dips on risk-on impulse, high US bond yields

• Gold prices retreat from the $1993.13 peak, trading around $1979.70, pressured by a shift towards riskier assets.
• Geopolitical jitters surround the financial markets, though the Israel-Hamas conflict remains contained.
• The economic calendar for the US is light on data but heavy on Federal Reserve speakers, with the market eyeing their comments for policy direction.

Gold price remains offered during Monday’s New York session dropped more than 0.50% after reaching a daily high of $1993.13, and exchanges hands at around $1979.70 due to a risk-on impulse.

XAU/USD sees a pullback from daily highs as market sentiment improves and central banks signal a potential pause in rate hikes

Investors' spirits are high amid speculation that most global central banks likely finished their tightening cycle. That, along with the Middle East conflict contained to parties involved– Israel and Hamas, spurred outflows from safe-haven assets, particularly non-yielding assets like Gold and Silver.

An uptick in US Treasury bond yields was a headwind for XAU/USD. The Greenback (USD), battered after the latest Fed decision to hold rates unchanged, aims up by 0.13% as the US Dollar Index rises above the 105.20 area.

This week’s economic calendar in the United States (US) will feature more Fed officials speaking, that data to be released, led by the Balance of Trade, the EBD/TIPP Economic Optimism, Initial Jobless Claims, and the University of Michigan (UoM) Consumer Sentiment. On the Fed line-up, Lisa Cook crossed wires on Monday, saying the Fed is “determined to reach the 2% inflation objective,” adding that she hopes that current policy settings are restrictive enough to achieve that task.

On Tuesday, Fed Governors Michal Barr and Christopher Waller would cross newswires, along with Regional Fed Presidents Jeffrey Schmidt, Lorie Logan, and John Williams. On Wednesday, XAU/USD traders would listen to Fed Powell's speech, followed by John Williams, Michael Barr, and Philip Jefferson.

XAU/USD Price Analysis: Technical outlook

Even though XAU/USD is dipping towards a two-week support trendline, Gold is upward biased but at a brisk to a deeper correction. A daily close below $1970 could pave the way to test the 20-day moving average (DMA) at $1955.57 before sellers can challenge the 200-DMA at $1934.20. Nevertheless, the path of least resistance is upward; once buyers reclaim $2000, that could expose the April 23 high at $2048.15, followed by the year-to-date (YTD) high at $2081.82.