Gold Price Forecast: XAUUSD pressured below $1890 as bears target the 100-DMA

• On Wednesday, Gold prices fell more than 1% amid a mixed market mood.
• China’s coronavirus woes, Russo-Ukraine tussles, and a buoyant US dollar weigh on the yellow metal.
• Gold Price Forecast (XAUUSD): A daily close below $1890 would pave the way towards the 200-DMA around $1830s.

Spot gold slides for the second day out of three in the week and breaks below March’s 25 lows near $1890 after failing to reclaim the $1900 figure amidst a mixed market mood as European, and US equities fluctuate. At the time of writing, XAUUUSD is trading at $1884.78 a troy ounce

China’s covid issues and Ukraine’s conflict keep sentiment mixed

Sentiment remains the main driver in the financial markets. Recently, China’s covid issues gained attention as a raft of contagions in Shanghai threatened to disrupt supply chains, causing slower economic growth and higher prices. The disease disseminated towards districts of Beijing, but authorities reacted fast and are already testing people. That, alongside the People’s Bank of China (PBoC) rate cut, and recent news wires that Shanghai is planning to relax restrictions, easied the burden of the worldwide second-largest economy.

In the meantime, the conflict between Ukraine and Russia appears to be extending longer. Additionally, the Russian gas producer Gazprom halted gas flows to Poland and Bulgaria on Tuesday, as both countries rejected to pay in roubles.

Elsewhere, the greenback remains in the driver’s seat, as shown by the US Dollar Index, rising above the 103.000 mark for the first time since January 4, 2017. As of writing, it sits at 103.202, up almost 0.90%. Meanwhile, the US 10-year Treasury yield, which correlates inversely with Gold Prices, is staging a comeback and is gaining seven basis points, sitting at 2.791%.

With all that said, the yellow metal would remain downward pressured, as the US dollar strengthens despite falling US Treasury yields. The greenback has shown some resilience on certain trading days in which US Treasury yields fell. Something that Gold traders need to be aware of.

On Thursday, the US economic docket would feature the Q1 Gross Domestic Product, expected to rise by 1%, lower than Q4 of 2021, at 6.9%. On Friday, the Fed’s favorite inflation indicator, the Core PCE, is expected to downtick to 5.3% from 5.4% y/y.

Also read: Gold Price Forecast: Bearish breakout of $1,900 hints at a steeper decline

Gold Price Forecast (XAUUSD): Technical outlook

Gold remains upward biased, but a daily close below $1890 could lead to further downside pressure. Also, MACD is accelerating south as XAUUSD gets ready to test the 100-day moving average (DMA) at $1876.37. Once broken, Gold bears next target would be the 200-DMA at $1833.18.