• Gold price drifts lower as US Treasury bond yields underpin US Dollar’s corrective bounce.
• Mixed concerns surrounding bank fallouts, growth allow XAU/USD traders to position themselves for Friday’s key US inflation clues.
• Central bankers’ comments, bond market moves should also be eyed for clear Gold price direction.

Gold price (XAU/USD) slides $1,970 during a two-day losing streak heading into Monday’s European session. In doing so, the bright metal justifies the latest rebound in the US Treasury bond yields, as well as the US Dollar, while extending the previous day’s U-turn from the key resistance zone.

Also behind the moves could be the receding banking fears as First Citizens bank agrees to buy a large chunk of Silicon Valley Bank (SVB). Additionally, talks that the pace of China’s growth, one of the world’s biggest Gold consumers, joined the previous day’s hawkish Fed talks and mostly US data to weigh on the XAU/USD of late.

Alternatively, International Monetary Fund (IMF) Chief Kristalina Georgieva warned that “risks to financial stability have increased,” which in turn probes the Gold sellers. On the same line were comments from Minneapolis Fed President Neel Kashkari who flagged fears of a US recession.

Amid these plays, US Dollar Index (DXY) prints a three-day uptrend near 103.12 as traders brace for Friday’s important inflation data, namely the US Core Personal Consumption Expenditure (PCE) Price Index for February.

That said, the US 10-year Treasury bond yields add two basis points to 3.40% while the two-year counterpart snapped a three-day losing streak near 3.85% by the press time.

Moving on, the Gold price remains on the bear’s radar amid the traders’ failure to cross the key resistance, as well as due to the month-end consolidation. However, the Fed’s preferred inflation gauge, up for Friday, becomes crucial for XAU/USD traders to watch for clear directions.

Gold price technical analysis

Gold price extends the previous day’s pullback from the key upside hurdles as XAU/USD bears keep their eyes on the $1,955 support confluence, comprising the 10-DMA and a 13-day-old ascending trend line.

Not only the failure to cross the broad resistance area between $2,010 and $1,998, the receding bullish bias of the MACD and a pullback in the RSI (14) from overbought territory also favors the Gold sellers.

It’s worth noting that the previous monthly high of around $1,960 acts as immediate support for the XAU/USD.

Should the quote drops below $1,955, the odds of witnessing a slump to the 61.8% Fibonacci retracement level of the metal’s fall from March 2022 to September, near $1,896, can’t be ruled out.

Meanwhile, multiple tops marked in the last year join an upward-sloping resistance line from August 2022 together highlighting the $1,998-2,010 region as the key hurdle for the Gold buyers to cross to retake control.

Following that, a run-up toward the previous yearly high of $2, 070 can’t be ruled out.

Gold price: Daily chart

Trend: Further weakness expected