Gold Price Forecast: XAU/USD to extend its recovery on a break above $1778

Gold is attempting a bounce from two-month lows amid falling yields, although a broadly firmer US dollar is probably going to limit the rebound, FXStreet’s Dhwani Mehta briefs.

XAU/USD attempts a bounce amid falling yields, will it last?
“The Fed’s hawkishness has poured cold water over the reflation trades, negatively impact the worldwide stocks and yields. The benchmark 30-year Treasury yields have fallen below the key 2% level, four-month lows, suggesting flattening of the yield curve and receding reflation bets. However, the US dollar continues to carry higher ground, which could likely limit the recovery within the gold price.”

“Gold bulls could turn cautious before a slew of speeches lined up from the Fed policymakers. Tuesday’s Fed Chair Jerome Powell’s testimony also will be closely followed.”

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