Daily Analysis XAUUSD - 7 Aug 2023

Friday's underwhelming release of the US Nonfarm Payrolls (NFP) data, combined with mixed signals from the Federal Reserve, caused the US Dollar to retreat from its multi-day high. As a result, the gold price managed to rebound from a support line that had been in place for several days. However, the tone shifted over the weekend due to hawkish comments made by Fed Governor Michelle Bowman, coupled with concerns about China's geopolitical situation, which put downward pressure on XAU/USD.

Additionally, the gold market's consolidation before the expected increase in demand from India, a significant customer for XAU/USD, is also contributing to keeping metal prices down in anticipation of important data and events from the US.

Looking ahead, XAU/USD traders should closely monitor the US Consumer Price Index (CPI) on Thursday and the Producer Price Index (PPI) for July on Friday to get clearer guidance. If the inflation data turns out to be positive, gold sellers may break the crucial support line established since October 2022, leading to potential disadvantages for the bullish sentiment.

Gold reached the 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 towards the 1920 support level. The 200MA (200-day moving average) serves as the primary resistance level to monitoring.

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