Previously, reduced expectations of a US Federal Reserve rate cut in 2023, along with the likelihood of a rate hike in June, bolstered the US Dollar Index (DXY) and weighed on the Gold price. The market also awaits Federal Reserve Chairman Jerome Powell’s speech and US debt ceiling negotiations, crucial factors influencing trading decisions as efforts are made to avoid a default.

In terms of key levels to watch, the GOLD price defends the $1,975 support confluence despite recent downward momentum. Resistance levels lie near $1,965 and $1,960, with the $1,975 hurdle acting as a pivotal point. If the price manages to surpass this level, additional upside resistance can be found near $1,981. On the downside, immediate support is seen at $1,950, followed by $1,945, which poses a significant challenge for sellers.

The GOLD price remains sensitive to ongoing developments in debt ceiling talks, trade tensions, and key technical levels, shaping the near-term outlook for XAU/USD.