Daily Analysis XAUUSD - 7 June 2023

Considering weakening US economic data, it is widely anticipated that the Federal Reserve will pause its tightening cycle at the upcoming meeting. However, market expectations indicate a nearly 52% chance of another 25-basis point rate hike in July.

Investors are closely monitoring the release of US inflation data next week, as it will provide guidance for the economic and interest rate outlook.

Despite this, metals prices remain more than 5% lower than their peak in May. This is attributed to the expectation that major central banks will maintain higher interest rates for an extended period due to persistent inflationary pressures. Additionally, recent data reveals that Chinese exports declined more than anticipated in May, indicating a challenging recovery path for the country as external demand slows down.

Gold's price movement is currently characterized by uncertainty, as evident from the price action that has formed a distinct price range. From a technical analysis standpoint, the daily chart shows that the 100-day moving average (100MA) is acting as a support level for the price. However, there is potential for a downside breakout, which could result in increased selling pressure, pushing the price further toward the next support zone located around 1871.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
2000	1982	1962	1937	1880	1800