Daily Analysis XAUUSD - 13 June 2023

The US CPI data for May is anticipated to show a headline annual increase of 4.2%, down from April's 4.9%. The Core CPI, excluding volatile food and energy prices, is expected to rise at a slightly faster pace of 5.6% compared to April's 5.5%. The monthly CPI is projected to rise by 0.3%, while the Core CPI is expected to increase by 0.4%.

A softer-than-expected US CPI release could weaken the US Dollar, suggesting a reduced likelihood of further tightening by the Federal Reserve later in the year. This could drive gold prices towards $2,000. Conversely, better-than-expected CPI figures could reinstate expectations of rate hikes after a potential pause by the Fed this week.

The US CPI data holds importance for the Fed's policy decisions, impacting the valuation of the US Dollar and influencing gold prices. The recent rate cut by the PBOC is not expected to have a significant market impact as traders remain cautious ahead of the US CPI release and the Fed event.

Gold prices are currently displaying a lack of significant movement, characterized by a narrow trading range and a lack of clear direction. This can be attributed to market participants awaiting upcoming data releases and events scheduled for the next 3 days, which are expected to provide clarity and insight. The 200MA on the 4H chart is the next solid level of resistance, while the 100-day moving average (100MA) is providing support on the daily chart.

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