Gold price is beaten down once again, as it heads towards the $1,900 mark this Thursday. As FXStreet’s Dhwani Mehta notes, XAU/USD could resume downtrend amid a bearish wedge.

Bearish wedge suggests more pain for gold bulls

“The US Core PCE price index is due for release later on Thursday. Hotter inflation is likely to seal in a 50-basis points May Fed rate hike. Although concerns over a potential recession, in the face of the recent yield curve inversion and aggressive Fed’s tightening could have a major impact on the dollar and gold valuations.”

“Gold price has confirmed a bearish wedge formation on the four-hour chart. If the bearish momentum extends, XAU/USD could fall further towards the $1,900 mark, below which a test of the March 29 lows of $1,890 will be inevitable.”

“Any recovery attempt will meet initial resistance at the 21-Simple Moving Average (SMA) at $1,927. If bulls manage to crack that barrier, then the confluence of the wedge support and the horizontal 200-SMA at $1,933 will emerge as a tough resistance.”