Daily Analysis XAUUSD - 12 June 2023

The United States (US) is set to release its latest consumer inflation figures on Tuesday, followed by the outcome of a two-day Federal Open Market Committee (FOMC) policy meeting on Wednesday. The uncertainty surrounding the Federal Reserve's (Fed) rate-hike trajectory is currently weighing on the US Dollar (USD). Additionally, concerns about a potential global economic downturn are expected to provide some support to the non-yielding gold price.

Recent dovish comments from several Fed officials have reinforced market expectations for a pause in the US central bank's rate-hiking cycle. However, unexpected rate hikes by the Reserve Bank of Australia (RBA) and the Bank of Canada (BoC) last week indicate that the fight against inflation is not over, thereby supporting the possibility of further policy tightening by the Fed. Consequently, hopes for another 25-basis point (bps) interest rate increase in July remain alive.

The price of gold is currently experiencing limited movement within a narrow range, lacking a clear direction, as market participants await the clarity provided by upcoming data and events this week. This uncertainty may lead to increased volatility in the market. The upper boundary of the bearish channel is serving as a resistance level, while the 100-day moving average (100MA) is acting as support on the daily chart. However, the focus of market participants is on significant events scheduled for the following week, as they are expected to have a notable impact on the future trajectory of the gold market.

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