Gold Price Forecast: XAU/USD bulls can ignore upbeat yields amid banking woes, mixed sentiment

• Gold price remains sidelined after a sluggish start of the week.
• United States Treasury bond yields recover amid mixed clues, prod XAU/USD price.
• Mixed performance of US Dollar challenges Gold price moves ahead of top-tier data/events.

Gold price (XAU/USD) remains steady around $2,021 after pausing the last week’s pullback from an all-time high. In doing so, the bright metal traces the US Dollar while also bearing the burden of upbeat United States Treasury bond yields. However, fears of the US banking fallouts and indecision about the Federal Reserve’s (Fed) next step allow the XAU/USD to grind higher.

Gold price grind higher amid banking woes, Federal Reserve fears

Gold price remain on the buyers’ list due to the metal’s haven demand amid looming bank fears. In its quarterly bank loan survey, the Federal Reserve (Fed) said, “On balance, tighter standards and weaker demand for commercial and industrial (C&I) loans to large and middle-market firms, as well as small firms, over the first quarter.

On the other hand, mixed United States data prod XAU/USD traders. That said, US Wholesale Inventories eased to 0.0% in March versus 0.1% expected and prior. However, the early clues of the US inflation seem easing and the last week’s US employment report wasn’t impressive as well, which in turn raises concerns about the US Federal Reserve’s (Fed) next move. As a result, the market sentiment remains dubious and allows Gold buyers to keep the reins.

Light calendar keeps XAU/USD trader’s focus on market fears

Given the lack of major data/events, the Gold price remains vulnerable to the key risk catalysts mentioned above, namely the US Federal Reserve (Fed) updates and banking woes, as well as the US default fears.

That said, Reuters came out with news suggesting US Treasury Secretary Janet Yellen’s personal reaching out to business and financial leaders to explain the "catastrophic" impact a US default on its debt would have on the U.S. and global economies, two sources familiar with the matter said on Monday.

On the other hand, Chicago Federal Reserve Bank President Austan Goolsbee said, "We should be extra-attuned to issues in the bond market related to the debt limit." Regarding the Fed's policy outlook, Goolsbee reiterated that it was too early to say what the next policy move will be, explaining that there were a lot of uncertainties regarding the impact of credit tightening on the economy.

It’s worth noting that the looming bank woes contradict the upbeat US earnings season and hence Wall Street flashes mixed signals, which in turn keeps the traders cautiously optimistic and allows the Gold price to remain firmer.

Elsewhere, United States Treasury bond yields recover and prod the XAU/USD buyers by putting a floor under the US Dollar price. That said, the benchmark US 10-year Treasury bond yields rose in the last three consecutive days to 3.50% while the US Dollar Index (DXY) licks its wounds around the Year-To-Date (YTD) lows. As a result, the Gold price remains indecisive but stays on the buyer’s radar amid cautious markets.

Gold price technical analysis

Gold price picks up bids to reverse the previous week’s retreat from the all-time high, as well as a U-turn from an upward-sloping resistance line from March 20, close to $2,085 by the press time.

It’s worth noting that the steady Relative Strength Index (RSI) line, placed at 14, remains steady while the Moving Average Convergence and Divergence (MACD) indicator prints bearish signals, which in turn suggests a slower grind toward the north.

That said, multiple hurdles around $2,050 and $2,060 can prod the Gold buyers ahead of the aforementioned resistance line whereas the $2,100 round may lure XAU/USD bulls afterward.

Meanwhile, the 100 and 200 Exponential Moving Averages (EMAs) around $2,005 and $1,986 restrict the short-term downside of the Gold price.

Following that, the mid-April low surrounding $1,969 and the previous monthly bottom of near $1,949 can challenge the Gold bears before the March 15 high of near $1,937.

Gold price: Four-hour chart

Trend: Gradual upside expected