Daily Analysis XAUUSD - 11 July 2023

Despite a slow start to the week, the price of gold (XAU/USD) continues to climb and reaches a new intraday high, building on Friday's upward movement. This rise is attributed to the weakness of the US dollar across the board, primarily influenced by subdued US inflation expectations and a combination of mixed data from China. However, the bullish sentiment for XAU/USD is tempered by both hawkish comments from the Federal Reserve and escalating tensions between the United States and China. Traders are being cautious in anticipation of the release of US inflation figures on Wednesday.

Furthermore, gold buyers face challenges arising from uncertainties surrounding US Treasury bond yields. It is worth noting that concerns about a possible economic recession often lead traders to seek refuge in traditional safe-haven assets like bonds, gold, and the yen. However, these same factors contribute to the US dollar's ability to benefit from negative sentiment, which has been an exception in recent times. Consequently, the market's mixed concerns provide some optimism for gold buyers, but the potential for further upside movement appears limited.

Gold has made a comeback by testing the 1931 level and is now challenging the final resistance level before confirming a reversal around the 1939-1940 range. With the market anticipating tomorrow's CPI (Consumer Price Index) data, there is a sense of pressure on yields, which in turn is having a positive impact on gold. Additionally, the presence of the 200-day moving average (200MA) on the 4-hour chart adds significance to the 1940 level as a confluence point for supporting gold.

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