Daily Analysis XAUUSD - 14 Aug 2023

Gold price (XAU/USD) continues to experience downward pressure, remaining at its monthly low following a four-week-long decline. This trend is driven by unsettling developments from China that are impacting market sentiment and bolstering demand for the safe-haven US Dollar. The prevailing risk-off sentiment is further fueled by geopolitical tensions involving Russia and the firming of US Treasury bond yields. These factors collectively contribute to the US Dollar Index (DXY) maintaining its strength, even as the Federal Reserve (Fed) faces impending policy shifts.

Importantly, the suspension of bond trading by China's Country Garden, along with the absence of payments from a subsidiary of the Chinese conglomerate Zhongzhi Enterprise Group, amplifies China's existing debt concerns. Furthermore, Russia's decision to equip new nuclear submarines with hypersonic missiles, coupled with the ongoing US-China trade dispute, adds to the overall risk-off atmosphere, negatively influencing the XAU/USD price.

On another front, the mostly optimistic indicators of US inflation contrast with the dovish expectations for interest rate futures, indicating that there may not be a Fed rate hike in September. This dynamic poses a challenge to the US Dollar as further information on US price pressures and the release of the Fed Minutes are awaited.

Gold is continuing its bearish trend and the next support level is around the 1900 area, which represents a significant confluence point.

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