Daily Analysis XAUUSD - 17 July 2023

The focus is on the positive US inflation data released on Friday and concerns surrounding China, which are receiving significant attention. These factors, along with the market's anticipation of a 0.25% increase in benchmark interest rates at July's Federal Open Market Committee (FOMC) monetary policy meeting, are exerting downward pressure on the gold price.

It's important to note that the two-week silence period for Fed officials ahead of the FOMC meeting allows the US Dollar to recover and weigh on the gold price recently. Additionally, comments from the International Monetary Fund (IMF) suggest inflation concerns are also impacting the XAU/USD price, despite a lackluster session and the US Dollar's inability to remain strong.

Looking ahead, the XAU/USD traders face a light economic calendar, particularly during the pre-Fed silence period of policymakers. However, the NY Empire State Manufacturing Index for June on Monday and US Retail Sales for the same month on Wednesday will be significant events to monitor for clearer market directions. Overall, risk-related catalysts will play a crucial role in determining the near-term trajectory of the gold price.

Gold found strong resistance at 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 1980. However, it appears that an initial correction is necessary.

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