Daily Analysis XAUUSD - 6 Sep 2023

The gold price (XAU/USD) is rebounding from its weekly low, breaking a four-day losing streak, ahead of key US data in sluggish markets. However, XAU/USD is struggling to support recent optimism driven by Chinese property stocks and hopes for more real estate sector stimulus, as concerns about a Beijing economic slowdown and hawkish Fed statements loom.

Strong US employment and economic data reinforce the Fed's commitment to maintaining higher interest rates, bolstering the US Dollar, and weighing on gold prices. Elevated yields, a stronger US Dollar, and US-China tensions further reduce market risk appetite, pressuring XAU/USD.

In the short term, attention is on the US ISM Services PMI and final US S&P Global PMI data to confirm US growth concerns and support hawkish Fed sentiment, which could favor gold bears. Ongoing concerns about China and related developments may also impact XAU/USD traders.

Gold continues to experience a selloff, with the next support level anticipated in the 1920-10 range. Since the dollar is currently leading the Majors, and yields are rising, gold is expected to face further selloff pressure.

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