Gold Price Forecast: XAU/USD bulls try their luck but upside appear limited amid cautious optimism

Gold price is making a minor recovery attempt this Tuesday, having found support just above the $1,920 barrier. But as FXStreet’s Dhwani Mehta notes, XAU/USD’s path of least resistance appears down.

Ukraine updates could revive the dollar’s demand

“Investors remain edgy amid slim chances of a meeting between the Russian and the Ukrainian leaders while cease-fire talks will likely continue. The developments surrounding the two warring nations will likely lead the market sentiment.”

“Gold is testing the trendline support now resistance at $1,931 on its road to recovery. If the latter is scaled on a sustained basis, then the 23.6% Fibo level at $1,937 will come into play once again. Further up, the mildly bullish 21-DMA at $1,953 will be retested. The next significant resistance awaits at $1,962, the 38.2% Fibo level of the same descent.”

“If the previous day’s low of $1,917 gets cracked convincingly, then floors will open floors towards the previous week’s low of $1,910. The line in the sand for gold bulls is seen at $1,895, where the March 16 low and ascending 50-DMA align.”