Gold price slides below $1,900 As USD Strengthens, US GDP Awaited

Gold price was wavering in a minor range of $1,891.56-1,911.31 since Monday after an intense selloff had continued from Friday’s high at $1,955.71. The gold price is now stabilizing currently in a concise range but price action is favoring an extreme imbalance on the downside amid the rising US dollar index.

Soaring expectations of a 50-basis point interest rate hike by the US central bank in May monetary policy is pushing the USD higher. The asset is exploding its all barricades swiftly and has climbed above the round level resistance of 102.00 firmly.

Despite an underperformance from the economic data, the US dollar index is scaling higher. The US Census Bureau on Tuesday reported the monthly Durable Goods Orders at 0.8% lower than the market consensus of 1%.

So, it would not be wrong to claim that higher odds of a jumbo rate hike by the Fed have infused fresh blood into the USD, also it is forcing the gold prices to remain vulnerable from the past few trading sessions.

Going forward, investors will focus on Thursday’s US Gross Domestic Product (GDP) data. A preliminary estimate for the yearly US GDP at 1.1%, advocates an underperformance in comparison with the prior print of 6.9%.

Technically; on an hourly scale, XAU/USD is forming an Inverted Flag chart pattern that signals a consolidation phase after a swift downside move. In this consolidation phase, those investors participate who failed to enjoy the previous fall and those who prefer a continuation bet rather than a reversal. The 50- and 200-period Exponential Moving Averages (EMAs) at $1,910.23 and $1,935.43 respectively are scaling lower, which signals that a bearish trend is intact.