Daily Analysis XAUUSD - 8 Aug 2023

The US Dollar found support in the hawkish remarks made by US Federal Reserve (Fed) Governor Michelle Bowman, along with the rise in US Treasury bond yields. Speaking at an event in Atlanta on Monday, Bowman mentioned, "I will be monitoring evidence of a consistent and meaningful decrease in inflation as I assess the need for potential further increases in the federal funds rate and the duration that the federal funds rate should remain at a suitably restrictive level."

Based on the CME Group's FedWatch Tool, approximately 86.5% of market participants anticipate that the central bank will refrain from raising interest rates in September. Investors still hold optimism for a final Fed rate hike within the year, pending the release of the Consumer Price Index (CPI) data from the United States on Thursday to validate any expectations of a forthcoming Fed rate increase. The renewed demand for the US Dollar caused a decline in the price of gold, pushing it toward multi-month lows.

Although the US10Y yield is decreasing, which could potentially benefit gold, at present, the dollar holds a more favorable position.

Gold reached historically significant 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 monitoring.

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