Daily Analysis XAUUSD - 27 July 2023

The Federal Open Market Committee (FOMC) raised its interest rate by 25 basis points to 5.25%–5.5%, the highest level in over 22 years. Fed Chairman Jerome Powell acknowledged that inflation has moderated but stated the target of 2% is still far off. The possibility of the Fed pausing rate hikes provided some support to precious metals like gold. Meanwhile, the European Central Bank (ECB) is expected to raise interest rates but concerns about the Eurozone's economic slowdown may impact their decision. China's additional support for its real estate sector and domestic consumption supports a positive outlook for gold. Market participants will closely watch US economic data, including GDP and jobless claims, which could influence the USD and affect gold prices in the short term.

Gold made a strong comeback, displaying a bullish momentum that propelled the price beyond the resistance level of 1973. It is now heading towards the first resistance level at 1986, with the next target set at 2000.

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