Daily Analysis XAUUSD - 7 Sep 2023

Gold price remains on the back foot for the fourth consecutive day even as the bears struggle to gain market acceptance ahead of the top-tier US data deepening global recession fears favoring US Dollar haven as developing economies are facing the wrath of higher interest rates from western central banks and potential upside risks of deflation to the Chinese economy.

US Yields also disfavoring gold attractiveness with US 10-year treasury yields reaching a 16-year high during the month, driven by speculation about a possible Fed reassessment of the US neutral rate.

Gold will be much influenced by this week's FED member speeches including more than 8 members where for the last 3 days the consensus seems divided between seeing the actual data signals a pause and others seeing more possibility of tightening until now playing negative for gold. Market pricing points to a strong likelihood that the Fed will not raise rates at its Sept. 19-20 policy meeting.

Global gold ETFs experienced a third consecutive month of net outflows in August from the last monthly report of the World Gold Council.

Gold continues the selloff as the dollar and US yields lead the scene. The next support is at the 1910 level, and a breakout of this support level will take the price toward 1900, followed by the 1885 level.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1920	1942	1931	1910	1900	1885