Gold is looking to extend the downside this Thursday. As FXStreet’s Dhwanie Mehta notes, defending $1,915 is critical for XAU/USD.

XAU/USD looks south towards $1,915

“Risk-off sentiment remains in full swing heading into European trading amid new Russian sanctions and the Fed’s hawkishness. Traders also remain cautious ahead of a barrage of Fed speakers due on the docket, which could reinforce the bearish interests around gold price.”

“Gold’s daily chart shows that the price remains poised to test the horizontal trendline resistance near the $1,915 region. A sustained break below the latter will expose the $1,900 round figure. The last line of defense for bulls is seen at the March 29 low of $1,890.

“On the upside, the confluence of the 21 and 50-Simple Moving Averages (SMA) around $1,926 will offer immediate resistance. The horizontal 100-SMA at $1,931 is likely to guard the additional upside en-route the $1,940 barrier.”