Daily Analysis XAUUSD - 7 July 2023

Gold price initially bounced but then dropped sharply to four-day lows of $1,903 due to increased demand for the US Dollar. However, the decline was short-lived as US Dollar sellers returned on mixed US JOLTS job openings data and the ISM Services PMI. The pullback in the US Dollar helped gold price stage a modest comeback to reclaim the $1,900 level. The upcoming Nonfarm Payrolls and wage inflation data will be key for the gold price. A weaker-than-expected US labor market report could lead to a sell-off in the US Dollar, benefiting gold price. On the other hand, a strong labor market report may resume the downtrend for gold.

Gold is currently in search of direction, being trapped between a resistance level at 1931 and a support level around the 1900 area. Selling pressures persist, and any downward movement would require a breakout below the 1900 level, potentially leading to a further decline toward the significant level of 1870-1860. However, if any unexpected positive development occurs, and gold gains some strength, the next target would be around 1938.

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