Daily Analysis XAUUSD - 9 Aug 2023

The improvement in China's Producer Price Index (PPI), which measures factory-gate inflation, along with positive news from the Biden Administration reported by Bloomberg, has helped counter the market's previous pessimism. Despite the downbeat China Consumer Price Index (CPI), these factors have contributed to a more positive outlook.

However, Italy's unexpected imposition of a tax on bank windfall profits and the global rating agencies' downward revision of US banks and financial institutions negatively impacted sentiment on Tuesday. This led to a decrease in the gold price, pushing it closer to the lowest point for the month. Additionally, concerns about a potential UK recession and China's slowing economic growth, along with geopolitical tensions between Beijing, Japan, and the US, have further contributed to the overall sentiment.

Looking ahead, the absence of significant data or events might lead gold traders to consolidate their weekly losses before the crucial US Consumer Price Index (CPI) data is released on Thursday. Depending on whether the US inflation data suggests a reduction in price pressure, there is a possibility that the XAU/USD (gold to US dollar) pair could see an extension of its recent rebound.

Gold continues to decline, following a bearish trend where the price is trading above the median line. The median line has been acting as a support level for the past three instances of lower lows in price movements.

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