Gold Price Forecast: XAU/USD is in pressure mode as markets reassess banking crisis, inflation woes(XAU/USD) stays defensive around $1,972, after snapping a two-day losing streak the previous day, as bulls seek more clues amid a cautious mood ahead of the top-tier data. Also challenging the XAU/USD price could be the mixed concerns about the market’s recent optimism that the banking turmoil is over. Furthermore, the month-end positioning and a light calendar are extra catalysts that restrict the Gold price moves of late. However, the economic line is about to be populated and hence can offer an active session to the commodity traders moving forward.That said, the United States Conference Board (CB) Consumer Confidence rose to 104.2 in March, versus 101.0 expected and an upwardly revised prior figure of 103.4. Further, US Housing Price Index rose 0.2% MoM in January versus -0.6% expected and -0.1% prior while the S&P/Case-Shiller Home Price Indices matched 2.5% YoY forecasts for the said month compared to 4.5% previous readings.Apart from Gold the traders’ indecision, and geopolitical fears surrounding China, Russia and North Korea also weigh on the XAU/USD price. That said, the Sino-American tussles appear grim of late while US President Joe Biden’s concerns about Russia’s shifting of nuclear weapons to Belarus and North Korean Leader Kim Jong Un’s lauding of readiness to use nuclear powers raise the market’s fears of deadly war in case if theses catalysts move forward. The same could join the month-end positioning and a light calendar to challenge the Gold buyers.Gold price reverses its pullback from a multi-month-old ascending resistance line while bouncing off the 10-DMA. However, the receding strength of the bullish signals on the Moving Average Convergence and Divergence (MACD) indicator tests the Gold buyers. Furthermore, a downside break of the Relative Strength Index (RSI) line, placed at 14, adds strength to the seller’s hopes of witnessing further declines in the XAU/USD.
That said, the 10-DMA level surrounding $1,960 joins the early February tops surrounding $1,955 to restrict short-term XAU/USD downside.
It’s worth noting, however, that a clear break of the $1,955 support could quickly drag the Gold price toward the $1,900 threshold.
Alternatively, the stated resistance line from early August 2022, around a $2,000 psychological magnet, precedes the Year-To-Date (YTD) high of near $2,010 to act as the last defense of the Gold bears, a break of which could propel XAU/USD toward the previous yearly top of $2,070.