Gold Price Forecast: XAU/USD remains under selling pressure above $1,900 amid the stronger USD

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• Gold price attracts some sellers around $1,915 amid the USD demand.
• Most Fed officials still expect the additional rate rises later this year, which weigh on gold price.
• Market players await the US growth number and the Core Personal Consumption Expenditure (PCE) Price Index.

Gold price (XAU/USD) struggles to gain around $1,915 during the early Asian session on Tuesday. Gold price is weighed by a rally in US Dollar (USD) and US higher yield.
Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, hovers around 105.95 after retreating from the highest level since November of 106.09 amid the higher for longer narratives in the US. Additionally, the 10-year yield climbed to 4.53%, a level not seen since October 2007.

Most Fed officials still expect the additional rate to rise later this year. The Federal Reserve Banks of Boston and San Francisco Presidents, Susan Collins and Mary Daly, emphasized that although inflation is cooling down, additional rate hikes would be necessary. While the Chicago Fed President Austan Goolsbee said that a soft landing is possible, inflation risks remain tilted to the upside and the Fed should have 100% commitment to returning inflation to 2%. It’s worth noting that rising interest rates raise the opportunity cost of investing in non-yielding assets, implying a negative outlook for XAU/USD.

Moving on, the US Gross Domestic Product (GDP) Annualized for the second quarter will be due on Thursday. The closely watched event this week will be the Core Personal Consumption Expenditure (PCE) Price Index, the Fed’s preferred measure of consumer inflation, due on Friday. The annual figure is expected to drop from 4.2% to 3.9%. Market players will take cues from these figures and find a clear direction in XAU/USD.

XAU/USD technical outlook

On the one-hour chart, gold price holds below the 50- and 100-hour Exponential Moving Averages (EMAs), which mean the past of least resistance is to the downside. Meanwhile, the Relative Strength Index (RSI) is located in bearish territory below 50, activating the bearish momentum for gold price.

Resistance level: $1,925, $1,945 and $1,970
Support level: $1,900, $1,885 and $1,865