GOLD PRICE FORECAST: XAU/USD BEARS PROD $1,960 SUPPORT AS BANK FEARS EASE – CONFLUENCE DETECTOR

Gold price (XAU/USD) drops to a fresh intraday low of $1,955 as bears struggle to retake control, after an earlier retreat, during Tuesday’s European session. The bright metal’s latest weakness could be linked to the market’s optimism surrounding the banking sector as policymakers try hard to allow all means to stop financial markets from busting. Also favoring the XAU/USD sellers could be the mixed headlines surrounding China, mostly downbeat, as traders fear receding growth from one of the world’s biggest Gold consumers.

It’s worth noting, however, that the cautious mood ahead of this week’s key inflation clues from Europe and the US, as well as the mixed comments from the European Central Bank (ECB) and the Federal Reserve (Fed) officials prod the Gold sellers of late. That said, the US Conference Board’s (CB) Consumer Confidence for March, as well as the second-tier housing and activity data, can direct intraday moves of the XAU/USD.