Daily Analysis XAUUSD - 23 Aug 2023

The gold price (XAU/USD) remains strong for the fourth consecutive day, even though there's limited upward momentum ahead of important data. The recent rise in XAU/USD could be attributed to the retreat of the US Dollar due to softer Treasury bond yields and slightly positive market sentiment. Additionally, the gold buyers are being favored by the anticipation of improved US-China relations, mixed concerns about de-dollarization at the BRICS Summit in South Africa, and heavy bets in the market that suggest no change in the Fed rate in September. Expectations also lean towards Fed Chair Jerome Powell not adopting a hawkish bias in his speech at the Jackson Hole Symposium on Friday. Currently, there's a negative correlation between yields and gold. It's important to mention, though, that firmer recent US data and the Federal Reserve policymakers' reluctance to embrace a rate-cut bias appears to support the XAU/USD rebound. The market is awaiting preliminary August Purchasing Managers Indexes (PMIs) for major economies.

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