Gold Price Forecast: Fading upside moves in XAU/USD until a clear downward trend in yields and USD – MUFG

This is the first time since March that Gold has fallen below $1,900. Economists at MUFG Bank analyze XAU/USD outlook.

Any dips below $1,900 is viewed as a buying opportunity

The Federal Reserve's aggressive monetary policy tightening has been the biggest headwind for Gold and hence continues to struggle in this environment. 

As a non-yielding asset, Gold is having to compete for a place in portfolios (less of an issue when bond yields are low, but more challenging as yields rise). 

Any dips below $1,900 is viewed as a buying opportunity as we would argue for fading upside moves in the USD-denominated Gold price until a clear downward trend in yields and the USD emerges.