Daily Analysis XAUUSD - 25 July 2023

The Asia-Pacific zone is experiencing a boost in optimism, thanks to China's stimulus measures and interventions by Beijing's central bank. Nonetheless, concerns persist due to mixed reactions to the recently released PMI data and central bank actions, encouraging the XAU/USD bulls.

Fears of a looming recession have resurfaced following the continuous decline in Europe and US PMI figures, indicating a deterioration in economic activity. The falling yields are also contributing to Gold's increasing allure as a safe-haven asset.

In the near term, the direction of the gold price is expected to be influenced by the US CB Consumer Confidence data for July, projected at 112.10 compared to the previous reading of 109.70. However, the primary focus will be on the upcoming monetary policy meetings of the Federal Reserve (Fed) and the European Central Bank (ECB), as market participants keenly await any hints or insights into their future policies.

Gold continued to decline until the 1952 level, which now appears to be a correction. However, the actual short-term trend seems healthy and may continue to decline if the dollar gains more momentum.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1982	1970	1960	1940	1931	1920