Daily Analysis XAUUSD - 18 Aug 2023

The surge in gold price could be hindered by increasing activity among gold sellers due to factors like heightened market risk aversion, stronger US Treasury yields, and persistent economic challenges in China. These factors might counteract the positive impact of the US Dollar's retreat, impacting gold's overall trajectory.

Initial Jobless Claims (Aug 11) dropped to 239K from the previous 250K, surpassing the projected 240K. The August Philadelphia Fed Manufacturing Survey improved, reaching 12 from the previous -13.5, outperforming the expected -10.

This situation reveals investors seeking more cues on the potential direction of the US Federal Reserve's (Fed) monetary policy tightening. Market uncertainties persist, making investors cautious and information-thirsty before finalizing decisions.

Next week, investor attention turns to US economic data, particularly Home Sales and Manufacturing indicators. The annual Jackson Hole Symposium will gather central bankers, policy experts, and academics to discuss the global economic outlook, particularly addressing ongoing inflation. The Symposium offers a platform for financial and economic leaders to exchange insights and shape strategies amidst the current inflation landscape.

The next target will be around the 1875 support, followed by the 1845 level as gold broke the 1900 confluence point and the dollar seems strong and can continue the bullish movement.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1940	1920	1942	1900	1875	1845