Daily Analysis XAUUSD - 21 July 2023

US employment clues joined disappointment from the US energy and technology shares to propel US Treasury bond yields, as well as the US Dollar, the previous day. Adding to this, pessimism surrounding China’s economic growth also challenged the gold buyers on Thursday.

It’s worth noting that apart from the US employment clues, the majority of the US statistics haven’t been impressive to support the Fed in announcing more rate hikes past July in the next week, which in turn pushed back the market bears and keep the gold buyers hopeful. However, it all depends upon how well the US central bank can defend the hawkish bias and the US Dollar.

Gold reached the second support level around $1964. The correction in DXY (the US Dollar Index) is what is pushing gold today towards its second support, as the correction in the dollar was long awaited. Additionally, DXY is currently at its resistance area zone.

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