Published on Apr 7, 2023

Daily Analysis For GOLD (XAU/USD) 07-04-2023

Gold (XAU/USD) Analysis

Economic Events and Scenario for XAU/USD (GOLD)

Economic Events :-

GMT	Event	Impact	Currency
00:30	(Japan) Overtime Pay YoY	Low	JPY
00:30	(Japan) Household Spending YoY	Low	JPY
00:30	(Japan) Household Spending MoM	Low	JPY
00:30	(Japan) Average Cash Earnings YoY	Low	JPY
00:50	(Japan) Foreign Exchange Reserves	Low	JPY
01:00	(Australia) Good Friday	None	AUD
01:00	(Belgium) Good Friday	None	EUR
01:00	(Canada) Good Friday	None	CAD
01:00	(Ecuador) Good Friday	None	USD
01:00	(El Salvador) Good Friday	None	USD
01:00	(Estonia) Good Friday	None	EUR
01:00	(Euro Area) Good Friday	None	EUR
01:00	(Finland) Good Friday	None	EUR
01:00	(Germany) Good Friday	None	EUR
01:00	(Latvia) Good Friday	None	EUR
01:00	(Luxembourg) Good Friday	None	EUR
01:00	(Malta) Good Friday	None	EUR
01:00	(Netherlands) Good Friday	None	EUR
01:00	(New Zealand) Good Friday	None	NZD
01:00	(Portugal) Good Friday	None	EUR
01:00	(Spain) Good Friday	None	EUR
01:00	(Switzerland) Good Friday	None	CHF
01:00	(United Kingdom) Good Friday	None	GBP
01:00	(United States) Good Friday	None	USD
04:35	(Japan) 3-Month Bill Auction	Low	JPY
05:30	(Netherlands) Household Consumption YoY	Low	EUR
05:30	(Netherlands) Manufacturing Production MoM	Low	EUR
06:00	(Japan) Leading Economic Index	Low	JPY
06:00	(Japan) Coincident Index	Low	JPY
07:00	(Lithuania) Balance of Trade	Low	EUR
07:45	(France) Imports	Low	EUR
07:45	(France) Exports	Low	EUR
07:45	(France) Current Account	Low	EUR
07:45	(France) Balance of Trade	Medium	EUR
08:00	(Austria) Industrial Production YoY	Low	EUR
08:30	(France) Foreign Exchange Reserves	Low	EUR
09:00	(China) Foreign Exchange Reserves	Low	CNY
10:00	(Greece) Balance of Trade	Low	EUR
13:30	(United States) Manufacturing Payrolls	Low	USD
13:30	(United States) Nonfarm Payrolls Private	High	USD
13:30	(United States) Unemployment Rate	High	USD
13:30	(United States) Non Farm Payrolls	High	USD
13:30	(United States) Participation Rate	Medium	USD
13:30	(United States) Government Payrolls	Low	USD
13:30	(United States) Average Weekly Hours	Low	USD
13:30	(United States) Average Hourly Earnings MoM	Medium	USD
13:30	(United States) Average Hourly Earnings YoY	Medium	USD
14:00	(United States) Used Car Prices MoM	Low	USD
14:00	(United States) Used Car Prices YoY	Low	USD
20:00	(United States) Consumer Credit Change	Low	USD

Today's Scenario: - Gold's bullish momentum appears to have stalled as markets enter a consolidation phase on the Good Friday holiday. Despite a weekly gain of approximately $2,007, the precious metal has slipped off the radar for some investors. One contributing factor to this lull in activity is the cautious mood surrounding the release of the US employment data for March, which is causing some traders to add filters to their XAU/USD trading strategies.

In summary, the Good Friday holiday has led to a consolidation phase in the markets, causing gold to slip off some investors' radars. Although the precious metal is set for a weekly gain, the upcoming release of US employment data has led to a cautious approach among traders, who are adjusting their XAU/USD trading strategies accordingly.

Buy Scenario: - Our Technical Confluence Indicator suggests that the price of gold recently fell below a critical support confluence at $2,010, while pausing its upward momentum to reach the previous yearly high recorded in March 2022.

The support confluence, which has now become resistance, includes Fibonacci 38.2% on a daily chart, the previous monthly high, and Pivot Point one-week R2.

If the gold price were to rise above $2,010 again, it could face resistance at the Fibonacci 161.8% on a one-week chart and SMA10 on a 4-hour chart, both around $2,015, before restoring its previous upside momentum. After that, the price could quickly rise towards the Pivot Point one-week R3 at around $2,035. Till we did not advise to buy XAU/USD.

Selling Scenario: - On the other hand, if the price of gold continues to trade below $2,010, it could face another significant support level around $1,990, which includes Pivot Point one-day S2 and Pivot Point one-week R1. If XAU/USD bears maintain control below $1,990, the price may decline towards the February 2022 peak at around $1,960 and the multiple lows near $1,950.

To summarize, our Technical Confluence Indicator indicates that the price of gold is at a critical juncture. A break above $2,010 could lead to renewed bullish momentum, while sustained trading below this level could lead to a decline towards lower support levels. We do not advise selling XAU/USD.

Support and Resistance Level: -