Daily Analysis XAUUSD - 9 June 2023

The market sentiment remains fragile due to growing concerns about a global economic downturn, primarily influenced by the weaker Chinese inflation figures released today. The National Bureau of Statistics recently announced that China's Consumer Price Index (CPI) contracted by 0.2% in May, while the Producer Price Index (PPI) experienced its most severe decline since February 2016, dropping 4.6% compared to the previous year. These indicators further indicate a deceleration in the post-COVID recovery of the world's second-largest economy.

Additionally, there are firm expectations that the Federal Reserve (Fed) will refrain from raising interest rates at its upcoming June 13-14 meeting. This has restrained the bullish sentiment for the US dollar and provided support for gold, which does not offer yields. The market has already fully factored in an imminent pause in the rate-hiking cycle of the US central bank. Thursday's US data reinforced these expectations, as it revealed a significant increase in Initial Jobless Claims to a 20-month high last week.

The price of gold is currently trading in a narrow range without a clear direction. The upper parallel of the bearish channel is acting as resistance, while the 100-day moving average (100MA) is providing support on the daily chart. However, market participants are awaiting major events scheduled for next week, which will likely influence future developments in the gold market.

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