Daily Analysis XAUUSD - 22 June 2023

During his bi-annual testimony to the US House Financial Services Committee, Federal Reserve Chairman Jerome Powell maintained a hawkish stance. However, the absence of new comments and conflicting statements from other Fed officials are putting downward pressure on the US Dollar and constraining movements in the XAU/USD (gold) pair.

Despite this, major central banks' commitment to a "higher for longer" interest rate outlook and doubts surrounding China's recession concerns, along with tensions between the US and China, are exerting downward pressure on the price of gold.

Looking ahead, monetary policy announcements from the UK and Switzerland are forthcoming, which could contribute to increased market volatility. Additionally, the Bank of Canada (BOC) and Bank of Australia (BOA) are expected to raise interest rates, adding further pressure on the metal.

Gold has recently breached the support level of 1938 on the Daily chart, signaling a potential shift into selling territory. Confirmation of this trend awaits further information on future policies from central banks, particularly as the majority of developed world central banks remain hawkish and are increasing interest rates. If gold continues to decline, a significant and robust support level can be found around the 1870-1860 area, which aligns with the downward parallel of the bullish long-term trend and the 200-day moving average (200MA) on the daily chart.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
2000	1980	1960	1933	1870	1800