Gold Price (XAU/USD) Faces Challenges Amid Mixed Concerns of Russia and China

The GOLD Price (XAU/USD) is struggling to maintain its corrective bounce after reaching a three-month low last week. Mixed concerns surrounding Russia and China, as well as upcoming top-tier inflation signals from the US and Europe, are contributing to the cautious market sentiment. Additionally, central bankers’ speeches at the European Central Bank (ECB) Forum and the US Banking Stress Test results add to the uncertainty.

Despite the US Dollar’s retreat and hopes of more stimulus from China, concerns over a downward revision of China’s growth forecasts and worries about Russia’s geopolitical actions are challenging gold buyers. Furthermore, fears of “higher for longer” interest rates and relatively upbeat US PMIs are acting as additional obstacles for the GOLD Price (XAU/USD).

Looking ahead, while mid-tier data may provide some entertainment for gold traders, the focus will primarily be on inflation clues and geopolitical news for clearer market direction.

Technical analysis indicates that the Gold Price (XAU/USD) may experience a slow grind towards the key resistance level at $1,951, which comprises Pivot Point one-week R1, the middle band of the Bollinger on one-day, and Pivot Point one-day R2.

Before reaching that level, the convergence of the 5-DMA, Fibonacci 23.6% on one-day, and the upper band of the Bollinger on the hourly chart will pose a challenge for GOLD buyers around $1,933.

On the upside, the 10-DMA, Fibonacci 61.8% on one-week, and the 200-HMA near $1,943 act as additional resistance levels before the $1,951 hurdle.

Conversely, immediate support for gold sellers can be found at $1,922, highlighted by Fibonacci 23.6% on one-week. If the price falls further, the lower band of the Bollinger on the one-day around $1,918 and the Pivot Point one-day S1 near $1,908 will present additional challenges for gold bears.