Daily Analysis XAUUSD - 10 Aug 2023

Gold traders will keep an eye on the US Consumer Price Index (CPI) due later in the American session. The inflation figure is expected to rise from 3% to 3.3%, and the core inflation figure is expected to stay at 4.8%.

The recent commentary from Federal Reserve (Fed) speakers indicated that the Fed's stance has shifted from additional rate hikes to holding rates steady. The Philadelphia Fed president, Patrick Harker, stated that the central bank can leave interest rates where they are. Meanwhile, Atlanta Fed president Raphael Bostic states that no further rate hikes are necessary. Market players anticipated that the Fed would be less hawkish in the September meeting. The prospects of the end of the tightening policy by the Fed might cap the upside in the USD and could act as a tailwind for the XAU/USD.

That said, the concern about the economic slowdown in China exerts pressure on the gold price as China is the major gold consumer in the world. The Chinese inflation data on Wednesday showed the Consumer Price Index (CPI) YoY fell 0.3% in July from 0% prior, and the market consensus anticipated a -0.4% decline. Meanwhile, the Producer Price Index (PPI) declined 4.4% YoY, compared to the 4.1% drop expected and a 5.4% decline prior.

Looking ahead, the US Consumer Price Index (CPI) report will have a significant impact on the Federal Reserve's (Fed) future rate hike path and help investors determine the direction of XAU/USD

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