Daily Analysis XAUUSD - 24 Aug 2023

Recent manufacturing surveys highlighted global economic challenges with worsening economic conditions in China. The US also presented dismal macro data, with business activity nearing stagnation in August. S&P Global's Composite US PMI dropped significantly to 50.4 from 52 in August, signaling concerns about a deeper global economic downturn. This influenced the safe haven gold price, which gained traction.

Additionally, reduced chances of tighter policies from the Federal Reserve (Fed) caused a pullback in the 10-year US government bond yield, supporting gold. Uncertainty surrounds the Fed's rate-hike timeline, possibly restraining aggressive bullish gold bets. The USD Index (DXY), reflecting the Greenback against various currencies, paused its decline from a two-month high. Any USD strength might cap the US Dollar-denominated gold price.

Investors await Fed Chair Jerome Powell's speech at the Jackson Hole Symposium for insights on future rate hikes, influencing USD demand and the XAU/USD outlook.

Gold made the awaited reversal movement, breaking the 1919 level and heading toward the 1940 resistance level. The negative correlation with US yields is currently giving an advantage to gold.

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