Daily Analysis XAUUSD - 4 Aug 2023

According to the latest data from the US on Thursday, Initial Jobless Claims rose to 227,000 for the week ending on July 29, which aligned with the market consensus. Additionally, the ISM Service PMI for July declined to 52.7 from the previous 53.9, falling short of expectations set at 53. Moreover, unit labor costs for Q2 increased by 1.6%, lower than the anticipated 2.6%.

Gold traders will closely monitor the US wage inflation and employment release on Friday. If the report shows stronger-than-expected figures, it could potentially prompt the Federal Reserve (Fed) to raise interest rates further throughout the year. This scenario would benefit the US Dollar (Greenback) but could create headwinds for XAU/USD. It's essential to note that gold tends to be sensitive to rising interest rates as it increases the opportunity cost of holding non-yielding bullion.

Gold reached historically important support in 1930 and has been hovering around this level, waiting for today's important US labor market data to determine its direction. If it breaks below the current support, it could head toward the 1920 support level. The 200MA (200-day moving average) serves as the primary resistance level to monitor.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1960	1953	1942	1931	1920	1900