Gold price accelerated to the downside following better-than-expected US economic data. US yields rose further, adding more pressure to the yellow metal. XAU/USD fell toward $1,965, a level last seen back on April 3rd.
From a technical perspective, some follow-through selling below the $1,970 horizontal support might be seen as a fresh trigger for bearish traders.
This could make the Gold price vulnerable to prolonging its recent corrective pullback from the all-time high, around the $2,078-$2,079 area touched earlier this month.
The XAU/USD might then accelerate the fall towards testing the 100-day Simple Moving Average (SMA), currently pegged near the $1,925 region, with some intermediate support near the $1,950-$1,948 region.
On the flip side, any attempted recovery above the $1,980 level is likely to confront stiff resistance and remain capped near the $2,000 psychological mark. That said, a sustained strength beyond might trigger a short-covering rally and lift the Gold price to the $2,020-$2,021 hurdle en route to the $2,035-$2,040 region.
Some follow-through buying should allow the XAU/USD to climb back towards the all-time high and extend the momentum further towards conquering the $2,100 round-figure mark.