Gold Price Forecast: XAU/USD falls sharply and targets April low at $1850 zone

• Negative start to the week for gold given continued rise in Treasury bond yields.
• Negative scenario exposes support at $1850.
• Silver and cryptocurrencies also down.

The Prayed is starting the week with another major drop and is looking closely at the April low. XAU/USD started just above $1880 and is trading at $1856, the lowest in almost a week. It remains under strong negative pressure as Treasury yields rise, accompanying another slump in equity markets.

The Treasury bond rates in the US marked new highs in years and continue to point higher. At the same time, equity markets are under pressure and the dollar remains firm. Quite a negative combo for gold, which drags silver. Even cryptocurrencies do not escape pessimism. The XAG/USD it falls 2.75% and is at $21.70, at its lowest since December.

The economic calendar ahead for Monday is calm, highlighting the report on wholesale inventories in the US and a presentation by Raphael Bostic, the president of the Atlanta Fed. Throughout the week, words from FOMC officials will be in the spotlight, in addition to April inflation figures to be released on Wednesday. This may be key for gold as it is expected to have an impact on the Treasury bond market.

$1850 zone is exposed

Gold is already looking at the $1850 zone, which is a key support that, if given way, would put the price at its lowest since February and on the way to the 200 day simple moving average at $1834 very close to $1830, where is the next relevance bracket.

If it manages to hold above $1,850, gold could take a breather. Immediate strong resistance can be seen at $1861 and then $1870. A daily close well above $1885 would improve the outlook for gold.

Technical levels