Daily Analysis XAUUSD - 21 Aug 2023

The gold price (XAU/USD) remains subdued at its lowest point in five months as investors turn to the US Dollar amidst uncertainty before significant data/events this week. The downward pressure on XAU/USD is also influenced by concerns about China, a major commodity consumer. Despite China's efforts to restore investor confidence, worries about its economic health continue to hamper gold price gains. Geopolitical tensions, trade war fears, the People’s Bank of China maintaining its five-year Loan Prime Rates (LPRs), and positive US Treasury bond yields contribute to the gold price decline. Nonetheless, uncertainty about Fed Chair Jerome Powell’s monetary policy stance and anticipation of August's Purchasing Managers Indexes (PMIs), US Durable Goods Orders, and central bankers' speeches at the Jackson Hole Symposium prevent a further drop in gold price.

The market is currently in a holding pattern, anticipating developments in data and events. The upcoming support level is projected to be around 1875, followed by the 1845 mark. This comes after gold's breach of the 1900 confluence point, while the dollar remains robust, potentially extending the bearish momentum.

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