Daily Analysis XAUUSD - 5 July 2023

The Fed hinted at a 50-bps interest rate hike by the end of the year, but recent US macro data has raised doubts about their ability to tighten monetary policy. Inflation pressures eased and the Manufacturing PMI contracted, leading to scrutiny of the Fed's future rate-hike path. Meanwhile, expectations of a 25-bps rate increase in the upcoming FOMC meeting have supported US Treasury yields and the USD, weighing on gold prices. Other central banks' hawkish outlooks have also capped gains for gold. However, concerns about a global economic downturn, particularly in China, and strained US-China trade relations have provided some cushioning for gold prices.

Gold experienced a correction over the past two days due to a change in sentiment driven by recession fears. The price found resistance at the 1931 level and has been unable to surpass it so far. Today's release of the FOMC meeting minutes is expected to generate volatility and provide further guidance for the direction of gold prices.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1980	1960	1931	1912	1900	1870