Published on May 8, 2023

Daily Analysis For GOLD (XAU/USD) 08-05-2023

Gold (XAU/USD) Analysis

Economic Events and Scenario for XAU/USD (GOLD)

Economic Events :-

GMT	Event	Impact	Currency
00:50	(Japan) BoJ Monetary Policy Meeting Minutes	Medium	JPY
01:00	(France) Victory in Europe Day	None	EUR
01:00	(United Kingdom) Bank Holiday for the coronation of King Charles III	None	GBP
01:30	(Japan) Jibun Bank Services PMI	Medium	JPY
01:30	(Japan) Jibun Bank Composite PMI	Low	JPY
02:30	(Australia) Building Permits MoM	Medium	AUD
02:30	(Australia) Private House Approvals MoM	Low	AUD
02:30	(Australia) Building Permits YoY	Low	AUD
02:30	(Australia) NAB Business Confidence	High	AUD
06:00	(Estonia) Inflation Rate YoY	Low	EUR
06:00	(Estonia) Inflation Rate MoM	Low	EUR
06:00	(Estonia) CPI	Low	EUR
07:00	(Finland) Balance of Trade	Low	EUR
07:00	(Germany) Industrial Production MoM	Medium	EUR
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
10:00	(Greece) Balance of Trade	Low	EUR
10:30	(Germany) 3-Month Bubill Auction	Low	EUR
11:00	(Spain) Consumer Confidence	Medium	EUR
11:00	(Latvia) Industrial Production MoM	Low	EUR
11:00	(Latvia) Industrial Production YoY	Low	EUR
15:00	(El Salvador) Inflation Rate YoY	Low	USD
15:00	(El Salvador) Inflation Rate MoM	Low	USD
15:00	(United States) Wholesale Inventories MoM	Low	USD
16:00	(United States) Consumer Inflation Expectations	Low	USD
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
23:45	(New Zealand) Electronic Retail Card Spending MoM	Low	NZD
23:45	(New Zealand) Electronic Retail Card Spending YoY	Low	NZD

Today's Scenario: - Gold price (XAU/USD) is hovering around $2,016 on a quiet Monday after recording its first daily loss in four and breaking a two-week uptrend. The slight recovery in the precious metal's price could be attributed to the lack of action in the market due to holidays in the UK and mixed risk factors. It is noteworthy that gold sellers are not actively participating, given the widespread weakness of the US dollar and concerns about the dovish stance of the Federal Reserve (Fed), as well as a cautious market sentiment ahead of the release of the US inflation and banking reports later this week.

Buy Scenario: - Gold price experienced a pullback on Friday as it failed to close above a three-month-old ascending resistance line around $2,068, in addition to overbought conditions of the Relative Strength Index (RSI) line at 14.

Despite the corrective move, gold price remained supported by the 21-day moving average (MA) at $2,005 and bullish signals from the Moving Average Convergence and Divergence (MACD) indicator. As a result, XAU/USD is expected to resume its upward trend, with the previous monthly high of around $2,050 as an immediate hurdle. The trend line resistance at $2,068 and the highs marked in 2022 and 2020 near $2,070 and $2,075 may act as additional upside filters before pushing prices towards the latest peak near $2,080. Till we did not advise to buy XAU/USD.

Selling Scenario: - On the downside, a daily close below the 21-day MA support of $2,005 may challenge the XAU/USD's immediate support at the $2,000 round figure and an upward-sloping support line from late March, around $1,985. The 50-day MA support at $1,952 acts as the last line of defense for the gold buyers. Overall, gold price remains on an upward trend and may continue to remain bullish. We do not advise selling XAU/USD.

Support and Resistance Level: -