Daily Analysis XAUUSD - 13 July 2023

The latest consumer inflation figures from the United States show that the Federal Reserve is likely to hold interest rates after a small increase at the July policy meeting. The Consumer Price Index (CPI) rose by 0.3% in June, with the yearly rate slightly lower than before. Core prices increased at the slowest rate since August 2021, and the US core CPI had the smallest increase in over two years. These trends suggest a cooling labor market, which allows the Fed to adopt a less aggressive stance. The gold price, which doesn't yield interest, benefits from this development. The decline in US Treasury bond yields and the weakened US Dollar also support the price of gold. Some technical buying and positive market sentiment contribute to the upward movement of gold, although further gains may be limited. Market participants are now awaiting the release of the Producer Price Index (PPI) and Weekly Initial Jobless Claims data, which will influence the dynamics of the US Dollar and provide additional momentum to the gold price.

Gold made a reversal breakout and continue going up toward the next resistance at 1970 which represent the upper parallel of the short-term bullish channel. The selloff in yields may help more gold to get more strength and today’s data may help. The long-term bearish trend seems stopped in the 1900 as the market is repricing and changing the view.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1982	1970	1960	1931	1920	1904