Gold Price Forecast: XAUUSD aims $2,000 amid a solid rebound to near $1,960, yields surge

Gold Price may face various headwinds as the expectations of the Fed's tightening bets elevated.

The 10-year US Treasury yield trims Wednesday’s losses and approaches the 2.80% threshold.

Gold Price could be on the way to a test of the 38.2% and 61.8% ratios near $1,950 and $1,930.

Gold (XAU/USD) witnessed a strong rebound in the late New York session from around $1,961.00 following a minor correction in the US dollar Index (DXY). Investors preferred the precious metal for parking their funds amid a long weekend due to the Easter holiday. It says that the Tough gets going but the journey of recapturing the crucial figure of $2,000 will be filled with difficulties.

The US Treasury yields have recovered from their losses recorded in the last two trading sessions on the optimism of an aggressive tight policy by the Federal Reserve (Fed) in May. The 10-year US Treasury yields have reclaimed their three-year high at 2.83% after the Bank of Canada (BOC) and Reserve Bank of New Zealand (RBNZ) hiked their critical policy rates by 50 basis points (bps). Elevation in policy rates by worldwide central banks raised hopes of mean reversion to neutral rates sooner rather than later. It is worth saying that the campaigning for higher interest rates will also be followed by the Fed in its May monetary policy, and in anticipation of that yields may remain underpinned while the gold prices will face headwinds.

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