GOLD PRICE FORECAST: XAU/USD NURTURES BEARISH BIAS BELOW $1,940 – CONFLUENCE DETECTOR

Gold Price remains below the key resistance confluence despite the corrective bounce, eyes third weekly loss.

Indecision about major central banks’ next moves, China woes keep XAU/USD rebond in check.

Expectations of easing inflation pressure in US allowed Fed to tease policy pivot and favored Gold Price recovery.

Additional signals of easing US price pressure, FOMC Minutes eyed for clear directions.

Gold Price (XAU/USD) licks its wounds at the lowest level in a month, snapping four-day downtrend as markets reassess previous fears of higher interest rates and geopolitical concerns about China. Also allowing the XAU/USD to lick its wounds at the multi-day low is the US Dollar’s failure to defend the late Thursday’s corrective bounce, as well as dicey US Treasury bond yields.

The Unimpressive US inflation data allowed the Fed policymakers to cheer the victory over price pressure while Reserve Bank of Australia (RBA) Governor Philip Lowe defends the latest pause in the monetary policy by citing fears of higher unemployment. Further, the latest Reuters polls about the Reserve Bank of New Zealand (RBNZ) and the European Central Bank (ECB) were also in favor of marking no interest rate changes in the next monetary policy meetings.

Elsewhere, the Chinese policymakers’ sustained defense of the Yuan also favors the market’s confidence that the Asian leader will overcome the economic fears, which in turn underpinned the latest cautious optimism and Gold Price.

It’s worth noting, that the light calendar and cautious mood ahead of the US PPI, Michigan Consumer Sentiment Index also tests the Gold buyers ahead of the next week’s  Federal Open Market Committee (FOMC) monetary policy meeting minutes.