Gold prices have fallen on Monday as the US Dollar continues to make gains, even as geopolitical tensions persist. XAU/USD is currently hovering around $1,995 after bouncing off the 200-bar Exponential Moving Average (EMA). However, while there has been some downside pressure on the Gold price, the latest market inaction is limiting its movements.
Meanwhile, the China-linked risk-off mood is joining the US Dollar's rebound to exert further downside pressure on the Gold price. Despite this, the US Treasury bond yields and overall weak US statistics are prodding the US Dollar bulls and allowing Gold buyers to remain hopeful ahead of the US Consumer Price Index (CPI) data and the latest Federal Open Market Committee (FOMC) Monetary Policy Meeting Minutes.
It should be noted that Friday's better-than-expected US Nonfarm Payrolls (NFP) have renewed hawkish Fed bets, suggesting a 0.25% rate hike by the US central bank, versus previously expected inaction. However, the downbeat US Treasury bond yields and overall weak US statistics are providing a glimmer of hope for Gold buyers.
Looking ahead, Gold traders should keep an eye on geopolitical headlines for intraday directions while US inflation and Fed Minutes will be crucial for a clear guide afterward. The technical analysis indicates that Gold prices remain depressed as XAU/USD breaks the one-week-old ascending support line, now resistance, as well as the 50-bar Exponential Moving Average (EMA) surrounding $2,007.
Gold price bears will be looking to re-enter the market near the $1,990 level, with previous resistance line from March 20 at around $1,982. An ascending support line from March 22, close to $1958, will also be on the XAU/USD seller's radar. Recovery moves remain elusive unless crossing the 50-EMA hurdle of $2,007.
