Daily Analysis XAUUSD - 19 July 2023

The previous day saw an improvement in sentiment due to US banks expecting increased profits from higher interest rates. Concerns about the Federal Reserve's policy shift after a 0.25% rate increase in July also contributed to the positive mood and boosted the price of XAU/USD. However, the positive details of US Retail Sales and expectations of the Fed maintaining higher rates for a longer period, possibly without announcing many rate hikes, have recently exerted downward pressure on the gold price.

In other news, China's Industry Ministry recently expressed concerns about insufficient demand and declining revenues, providing justification for the downbeat Gross Domestic Product (GDP) data in the second quarter (Q2). These concerns raised fears about a slowdown in the economic recovery of the world's largest industrial player. Given China's significant consumption of oil, pessimism regarding the nation's economic outlook has weighed on commodity prices.

Gold experienced a correction, pulling its price back toward the 1972 level after reaching a new high since June. The next support levels to watch are at 1970 and 1964. However, if yields continue to decrease, gold may resume its upward movement, and a potential breakout above the current resistance level at 1985 could lead to further gains toward the 2000 level.

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