Daily Analysis XAUUSD - 14 July 2023

Despite the release of the soft inflation and Producer Price Index (PPI) report for June, the precious metal has been unable to take advantage of the situation, indicating that household demand remains subdued and the path towards achieving the 2% inflation target remains intact.

Although the US Dollar Index (DXY) has experienced a significant decline, gold prices are struggling to recover. The DXY has dropped below the psychological level of 100.00 and is currently hovering around 99.65. The anticipation of only one interest rate hike announcement from the Federal Reserve (Fed) by the end of the year has caused a sharp decline in the USD Index.

Contrary to investors' expectations, Fed Governor Christopher Waller expressed confidence in the need for two additional interest rate hikes this year to curb inflation and bring it down to 2%. Waller's hawkish comments have contributed to a rise in US Treasury yields, with the yield on 10-year US Treasury bonds reaching approximately 3.77%.

Gold found strong resistance at the 1960 and formed a bearish pattern that may lead to a temporary correction toward the 1940. Gold is still bullish and may continue toward the next resistance of 1970 and followed by the 1980. But a first correction seems needed.

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