• Gold Price drops for the fourth consecutive day as bears cheer downside break of key support confluence.
• China-inflicted risk aversion joins hawkish Fed talks and upbeat US data to weigh on XAU/USD price.
• Fed Chair Jerome Powell’s ability to defend the hawkish halt will be eyed by the Gold sellers to keep the reins.

Gold Price (XAU/USD) remains on the back foot as bears prod $1,930 support confluence with eyes on Fed Chair Jerome Powell’s bi-annual testimony. In doing so, the XAU/USD drops for the fourth consecutive day amid a firmer US Dollar and sour sentiment, mainly led by China.

That said, the US Dollar Index (DXY) stays defensive around 102.60 while keeping the four-day uptrend without marking keen interest to move toward the north. Even so, the geopolitical fears surrounding the US and China weigh on the sentiment and put a floor under the US Dollar’s haven demand. Also underpinning the US Dollar’s run-up, as well as weighing on the Gold price are the upbeat US housing numbers and hawkish Fed signals published the previous day.

Apart from that fears that China’s inability to mark upbeat growth can endanger the Gold demand from one of the world’s biggest XAU/USD consumers also weigh on the precious metal prices. Late on Tuesday, The Straits Times marked the second consecutive monthly easing on China’s Gold demand.

Looking forward, a light calendar ahead of Fed Chair Jerome Powell’s bi-annual testimony may test the Gold sellers but the buyers are less likely to return to the table.

Also read: Gold Price Forecast: XAU/USD keeps sight on $1,918 and Fed Chair Powell’s testimony