Gold Price Forecast: XAU/USD consolidates losses below $4,000

• Gold appreciates from $3,920 lows but is lacking follow-through beyond the $4,000 level.
• Fed Chairman Powell's hawkish comments boosted US yields and added pressure on Gold on Wednesday.
• Technically, the pair remains on a bearish correction, that might extend to the $3,800 area.

Gold is going through a mild recovery on Thursday, following a four-day losing streak. The precious metal found some support at $3,900, but so far, it is lacking bullish momentum and remains unable to return above the $4,000 psychological level, which leaves the immediate bearish trend intact.

The precious metal trims losses with markets looking for direction, as traders ponder the scope of the Sino-US trade deal. The pair, however, suffered a significant setback on Thursday as Federal Reserve Chairman Jerome Powell's comments, putting a December rate cut into question, boosted US Treasury yields higher.

Technical Analysis: Gold's bearish correction might extend to $3,800

The technical picture shows price action looking for direction below $4,000., The Relative Strength Index (RSI) in 4-hour charts has picked up from lows but remains below the 50 level, while the Moving Average Convergence Divergence (MACD) shows a frail upside momentum.
The broader bearish trend remains in play, with support at the 61.8% Fibonacci retracement of the September 18 - October 17 bull run, at the 3,920 area, holding bears from now. Below here, the October 2 low, near $3,820, emerges as the next target. The measured target of an A-B=C-D retracement from all-time highs near $4,380 would be at $3,795.

Bulls, on the contrary, should break above Tuesday's and Wednesday's highs around $4,030 to gain confidence for a stronger recovery, and shift the focus to the October 23 highs, at $4.150, ahead of a previous support area near $4,220 (October 20 lows).