Daily Analysis XAUUSD - 26 July 2023

The price of gold is attempting to recover as investors come to terms with the Federal Reserve's (Fed) plan to raise interest rates by 25 basis points, bringing the rate to the range of 5.25% to 5.50%. This has led to increased demand for the precious metal as market participants hope that the rate hike in July will be the final one for this year, and the Fed might pause its rate-hiking cycle for a longer duration.

Furthermore, concerns about a global recession have eased due to the positive Consumer Confidence in the United States, along with expectations that the Fed will soon announce the peak of interest rates. These factors have put pressure on the US Dollar Index (DXY), causing it to retreat. Investors believe that Fed Chair Jerome Powell will not take an overly aggressive stance on handling sticky inflation.

Following the Fed's policy decision on Wednesday, there is anticipation around the release of US GDP numbers for the second quarter on Thursday, which is keeping investors on edge.

Gold, after finding support around the 1954 level, underwent a correction and is currently facing resistance in 1970, coinciding with the upper parallel of the downtrend. If there's a breakout above the current level, the first resistance will likely be encountered around 2074, followed by the 2080 level.

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