Daily Analysis XAUUSD - 1 Aug 2023

In July, the Chinese Caixin Manufacturing PMI fell to 49.2, the lowest level since January, impacting precious metals due to China's status as a major gold consumer. The Manufacturing PMI slightly improved to 49.3 but remained below 50, indicating contraction. Meanwhile, the NBS Services PMI declined from 53.2 to 51.5.

In the United States, evidence of easing underlying price pressures may prompt the Fed to soften its hawkish stance, potentially limiting the US Dollar's strength and supporting the gold price. The PCE Price Index decreased to 3% in June, while the Core PCE Price Index was at 4.1% annually.

Trade tensions between the US and China over technology access may add pressure to the gold price. China announced export restrictions on certain drones and equipment to the US.

Market participants are awaiting various US economic data, including the ISM Manufacturing PMI, JOLTS Job Openings, ADP Private Employment, Weekly Jobless Claims, Unit Labor Cost, and the Nonfarm Payrolls (NFP) report, which could influence USD price dynamics and create short-term trading opportunities around gold. The Sino-US relationship remains a focal point in the market. The gold came back after finding resistance at the mean line at the 1972.5 and the next support is at the 1948 level.

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