Daily Analysis XAUUSD - 5 Sep 2023

The gold price (XAU/USD) has continued to decline for the fourth consecutive day, despite bears struggling to dominate the market. This decline reflects cautious optimism among traders as the US returns to full market activity after a long weekend.

Several factors contribute to this trend. Concerns about China's ability to support its economic recovery, coupled with stronger US Treasury bond yields, have bolstered the US Dollar's resurgence in a sluggish session.

Furthermore, recent positive developments in the US have supported the Dollar's strength. These include upbeat US Nonfarm Payrolls (NFP) data, Moody's optimistic revision of US growth forecasts, and hawkish remarks from Federal Reserve Bank of Cleveland President Loretta J. Mester.

Interestingly, positive news from China's leading real estate company, Country Garden, and Beijing's efforts to support economic recovery have not deterred gold sellers due to the prevailing strength of the US Dollar.

Looking ahead, market reactions to sentiment shifts, July's US Factory Orders data, and ongoing Fed concerns will be crucial in determining future price directions.

Gold corrected to come back while the support level remains at $1932. Dollar strength and yields holding higher are preventing gold from advancing more.

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