Daily Analysis For GOLD (XAU/USD) 19-05-2023

Daily Analysis For GOLD (XAU/USD) 19-05-2023

Gold (XAU/USD) Analysis
Gold (XAU/USD)
Economic Events and Scenario for XAU/USD (GOLD)
Economic Events :-
00:01(United Kingdom) Gfk Consumer ConfidenceHighGBP
00:30(Japan) Core Inflation Rate YoYMediumJPY
00:30(Japan) Inflation Rate MoMLowJPY
00:30(Japan) Inflation Rate YoYHighJPY
00:30(Japan) Inflation Rate Ex-Food and Energy YoYLowJPY
01:00(Belgium) Friday after Ascension DayNoneEUR
04:00(New Zealand) Credit Card Spending YoYLowNZD
04:35(Japan) 3-Month Bill AuctionLowJPY
05:30(Japan) Tertiary Industry Index MoMLowJPY
07:00(Germany) PPI YoYLowEUR
07:00(Germany) PPI MoMMediumEUR
08:00(Slovakia) Current AccountLowEUR
09:00(Greece) Current AccountLowEUR
09:00(Italy) Construction Output YoYLowEUR
09:30(Slovenia) PPI YoYLowEUR
10:00(Slovakia) Unemployment RateLowEUR
11:00(Spain) Consumer ConfidenceMediumEUR
12:00(Montenegro) Current AccountLowEUR
13:30(Canada) Retail Sales YoYHighCAD
13:30(Canada) Retail Sales Ex Autos MoMHighCAD
13:30(Canada) Retail Sales MoMHighCAD
13:45(United States) Fed Williams SpeechMediumUSD
14:00(United States) Fed Bowman SpeechMediumUSD
15:55(Euro Area) ECB Schnabel SpeechMediumEUR
16:00(United States) Fed Chair Powell SpeechHighUSD
18:00(United States) Baker Hughes Oil Rig CountLowUSD
18:00(United States) Baker Hughes Total Rig CountLowUSD
20:00(Euro Area) ECB President Lagarde SpeechMediumEUR

Today's Scenario: - The price of gold (XAU/USD) is currently struggling to find a clear direction after a three-day downtrend, with bears taking a breather at levels not seen since early April. The temporary pause in further declines may be attributed to news suggesting that the US House Freedom Caucus has the ability to block any agreement to raise the $31.4 trillion debt ceiling. Additionally, the US-Taiwan trade deal and upcoming meetings between Chinese Commerce Minister Wang Wentao, USTR Tai, and US Commerce Secretary Gina Raimondo could increase tensions between the US and China, pressuring gold bears.
Previously, a decrease in market expectations for a US Federal Reserve rate cut in 2023, along with an increase in the likelihood of a 0.25% rate hike in June, stronger US economic data, and hawkish Fed comments, boosted the US Dollar Index (DXY) and weighed on the price of gold.

Buy Scenario: - The price of gold is currently defending the previous day's break below the $1,975 support level. This level now acts as resistance and is a confluence of the Pivot Point one week S2 and the 61.8% Fibonacci retracement on the daily timeframe.
In addition to the $1,975 hurdle, there are multiple resistance levels near $1,965 and $1,960 that are challenging the recovery of the gold price. The Fibonacci 38.2% retracement on the daily timeframe highlights $1,965 as an important resistance, while the Fibonacci 23.6% retracement on the daily timeframe marks $1,960 as a support-turned-resistance level.
If the gold price manages to surpass the $1,975 hurdle, the Pivot Point one day R1 around $1,981 could act as an additional resistance before giving control to the buyers. Till we did not advise to buy XAU/USD.

Selling Scenario: - On the downside, the immediate key support for the gold bears to watch is around $1,950, which is a convergence of the previous monthly low and the lower band of the Bollinger on the four-hour timeframe.
Further down, a cluster of the Pivot Point one day S1, one week S3, and one month S1 levels highlights $1,945 as a strong support level that would be challenging for sellers to break.
Overall, the gold price remains bearish unless it crosses above $1,980. We do not advise selling XAU/USD.

Support and Resistance Level: -
S1 1944.40-R1 1978.43
S2 1931.19-R2 1999.25
S3 1910.37-R3 2012.46


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