Daily Analysis XAUUSD - 22 Aug 2023

Gold's struggle to maintain gains from the previous day is evident as it hovers near $1,895 during Tuesday's Asian session. The XAU/USD pair, driven by a weakening US Dollar (USD), aims to break a four-week losing streak. Despite this, gold sellers remain cautious due to various factors. These include increased market risk aversion, elevated US Treasury yields, and China's ongoing economic challenges. These elements might counterbalance the impact of the Greenback's decline on gold prices.

Should there be positive US economic data, concerns could arise regarding the potential tightening of monetary policy in the September US Federal Reserve (Fed) meeting. This might enhance hawkish sentiment among USD buyers.

Investor sentiment may be significantly swayed by China's economic struggles. China's People’s Bank of China (PBoC) unexpectedly trimmed the Loan Prime Rate (LPR) by 10 bps, rather than the anticipated 15 bps, indicating a focus on aiding existing borrowers instead of fostering credit expansion.

The market is currently in a reversal movement, awaiting developments in data and events. The 1900 level is acting as the first resistance, and a breakout above 1905 will likely lead to the next confluence point in 1919.

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