Gold Price Forecast: XAU/USD Hits 2-Week Low Near $1,815

• Gold remains on the defensive for the third day in a row and falls to a nearly two-week low.
• The modest strength of the dollar was seen as a key factor weighing on the yellow metal, denominated in dollars.
• Recession fears and falling US bond yields could help limit losses ahead of speeches from top central bankers.

The price of gold (XAU/USD) is extending the rejection from the important 200-day SMA this week and falls for the third day in a row on Wednesday. XAU/USD has fallen to a low of almost two weeks, around the area of ​​$1,815at the start of the European session.

The aggressive statements from the day before of the president of the New York Fed, John Williams, and of the San Francisco Fed, Mary Daly, Expectations rose for a faster tightening of US central bank monetary policy. This helped the US dollar extend the previous day’s strong rise, which in turn, weighed on demand for gold, denominated in dollars.

Nevertheless, market participants remain divided on the need for a more aggressive Fed rate hike amid growing recession fears. This, coupled with a further decline in US Treasury yields and market caution, could offer some support to the yellow metal and help limit deeper losses.

Investors may also refrain from taking aggressive positions, preferring to stay out of key events. The chairman of the Fed, Jerome PowellGovernor of the Bank of England, Andrew Baileyand the president of the European Central Bank, Christine Lagardewill speak on Wednesday at the ECB forum in Sintra, Portugal.

Investors will be looking for further clues on the tightening path of the major central banks, which will play a key role in driving the price of gold in the short term. Aside from this, broader market risk sentiment, US bond yields and dollar price dynamics will help determine the next directional move for XAUUSD.

Technical levels to watch