Daily Analysis XAUUSD - 28 Aug 2023

The gold price (XAU/USD) appears uncertain despite countering its bearish trend with the first positive weekly close in five weeks. This lack of movement could be attributed to market anxiety before significant US inflation and employment data releases this week. Despite the decline in US Treasury bond yields, the US Dollar, and optimism tied to China's developments, XAU/USD doesn't respond positively.

Apart from pre-data caution, the gold price is affected by mixed statements from US Federal Reserve (Fed) officials at the annual Jackson Hole Symposium. Although many defended restrictive monetary policies, they refrained from suggesting further rate hikes. They emphasized data dependency for future decisions, implying a weakening stance among Fed hawks.

Furthermore, China's additional economic stimulus measures aim to boost activity, but concerns about US-China trade relations and a slower recovery in a major gold consumer nation.

Gold stooped at the 1922 level and is waiting for direction as this week we will have a great number of economic data. For gold to continue up the yields need to do a comeback. The next resistance level is at the 1940-45 area.

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