Daily Analysis XAUUSD - 1 Sep 2023

The gold price (XAU/USD) currently reflects a pre-NFP trading pause as bullish momentum rests above crucial support levels. This comes amidst uncertainty regarding the Federal Reserve's future actions, with recent US economic data not favoring rate hikes, making today's US jobs report critical.

While US service inflation remains steady, weak early signals in the employment sector dampen rate hike expectations. China's measures to bolster its economy, such as the People's Bank of China's 2.0% foreign exchange reserve ratio cut and Yuan deposit rate reductions by Chinese banks, support gold prices due to China's significant XAU/USD demand.

The broader sentiment of a potential halt in rate hikes, supported by softer inflation in top-tier economies, strengthens gold buyers' position. Looking ahead, the US Nonfarm Payrolls (NFP), Unemployment Rate, and Average Hourly Earnings for August will provide clarity. Recent data has hinted at a dovish stance from the Fed, necessitating strong outcomes to drive gold prices upwards.

Gold stabilized around the $1950 area, where it encountered a resistance level. The pair is presently awaiting today's data to confirm the ongoing bullish trend. The next target is set at $1965, while the support level remains at $1935.

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