$1,935 holds the key for XAU/USD as King dollar reigns supreme
- Gold bulls give into the bearish pressures on hopes for diplomacy on the Ukraine crisis.
- The US dollar dominates amid hawkish Fed’s outlook and Ukraine, coronavirus-led risk-aversion.
- Gold price faces stiff resistance at 38.2% Fibo level while 23.6% Fibo support could cap the losses.
Dollar bulls regained ground on Friday, staging an impressive rebound and capping the further upside in gold price near $1,965. In the first half of the day, gold buyers remained in control, as the US dollar was sold off into USD/JPY’s freefall, led by higher Japanese inflation and verbal intervention. Dip buying trades and a lack of progress on the Russia-Ukraine war added to gold’s bullish potential. The course, however, changed in the second part after the Treasury yields extended their winning momentum, offering the much-needed impetus to the dollar bulls. Gold price retreated sharply to $1,943 lows, as hawkish…