Daily Analysis For GOLD (XAU/USD) 20-04-2023

Daily Analysis For GOLD (XAU/USD) 20-04-2023

Gold (XAU/USD) Analysis
Gold (XAU/USD)
Economic Events and Scenario for XAU/USD (GOLD)
Economic Events :-
00:50(Japan) Foreign Bond InvestmentLowJPY
00:50(Japan) Stock Investment by ForeignersLowJPY
00:50(Japan) Imports YoYLowJPY
00:50(Japan) Exports YoYMediumJPY
00:50(Japan) Balance of TradeHighJPY
02:15(China) Loan Prime Rate 1YMediumCNY
02:15(China) Loan Prime Rate 5YMediumCNY
04:35(Japan) 20-Year JGB AuctionLowJPY
05:30(Japan) Tertiary Industry Index MoMLowJPY
05:30(Netherlands) Unemployment RateMediumEUR
05:30(Netherlands) Consumer ConfidenceMediumEUR
06:00(Estonia) PPI YoYLowEUR
06:00(Estonia) PPI MoMLowEUR
07:00(Germany) PPI YoYLowEUR
07:00(Germany) PPI MoMMediumEUR
07:45(France) Business Climate IndicatorLowEUR
07:45(France) Business ConfidenceMediumEUR
09:00(Greece) Current AccountLowEUR
09:00(Spain) Balance of TradeMediumEUR
09:40(Spain) 7-Year Obligacion AuctionLowEUR
09:40(Spain) 10-Year Obligacion AuctionLowEUR
10:00(China) FDI (YTD) YoYMediumCNY
10:00(Euro Area) Balance of TradeMediumEUR
10:00(Belgium) Consumer ConfidenceLowEUR
10:00(France) 5-Year BTAN AuctionLowEUR
10:00(France) 3-Year BTAN AuctionLowEUR
11:00(France) 10-Year Index-Linked OAT AuctionLowEUR
11:00(Luxembourg) Unemployment RateLowEUR
11:00(Portugal) PPI YoYLowEUR
11:00(Portugal) PPI MoMLowEUR
12:30(Euro Area) ECB Monetary Policy Meeting AccountsMediumEUR
13:30(United States) Philadelphia Fed Manufacturing IndexMediumUSD
13:30(United States) Philly Fed Business ConditionsLowUSD
13:30(United States) Philly Fed EmploymentLowUSD
13:30(United States) Philly Fed CAPEX IndexLowUSD
13:30(United States) Philly Fed Prices PaidLowUSD
13:30(United States) Philly Fed New OrdersLowUSD
13:30(United States) Jobless Claims 4-week AverageHighUSD
13:30(United States) Continuing Jobless ClaimsHighUSD
13:30(United States) Initial Jobless ClaimsHighUSD
15:00(Euro Area) Consumer ConfidenceMediumEUR
15:00(United States) Existing Home Sales MoMHighUSD
15:00(United States) Existing Home SalesHighUSD
15:00(United States) CB Leading Index MoMLowUSD
15:30(United States) EIA Natural Gas Stocks ChangeLowUSD
16:30(United States) 8-Week Bill AuctionLowUSD
16:30(United States) 4-Week Bill AuctionLowUSD
17:00(United States) Fed Waller SpeechMediumUSD
18:00(United States) 5-Year TIPS AuctionLowUSD
20:00(United States) Fed Bowman SpeechMediumUSD
21:15(Euro Area) ECB Schnabel SpeechLowEUR

Today's Scenario: - In the early European session, the price of gold (XAU/USD) is exhibiting erratic movements around $1,994.00. At present, the precious metal appears to be directionless, as investors are eagerly anticipating the preliminary release of the United States S&P PMI data, which is slated for Friday.
Meanwhile, the US Dollar Index (DXY) has shown signs of volatility contraction, dropping below 102.00 after a period of turbulent swings caused by the Federal Reserve's (Fed) Beige Book. Although economic activity in 12 Fed districts remained relatively stable, the declining trend of advances to consumer and business loans by US commercial banks has deepened concerns of a recession in the US economy. Banks have tightened their credit disbursement conditions to prevent a deterioration of asset quality.

Buy Scenario: - On the other hand, if the price of gold recovers, it needs to maintain a daily close above the $2,000 breakout before attempting to approach the latest peak of $2,048. However, the top line of the aforementioned channel, located around $2,051, could pose a challenge to the gold buyers before directing them towards the previous yearly high of $2,070, as well as the record high of approximately $2,075 set in 2020.
Overall, the gold price appears to be tempting sellers, but the downside bias remains difficult to ascertain. Till we did not advise to buy XAU/USD.

Selling Scenario: - The price of gold has rebounded from the lower boundary of an ascending trend channel that has been in place for the past month. However, the bears have been relentless in attacking the 21-day moving average, and the Moving Average Convergence and Divergence (MACD) indicators are displaying bearish signals, indicating a bias towards the downside.
It's worth noting that the Relative Strength Index (RSI) line, placed at 14, has retreated from the overbought territory and is approaching the normal level of 50, which poses a challenge to the gold sellers.
For the gold price to convince intraday sellers, it needs to break the immediate support at $1,971. Even then, the bears could face resistance at February's high of around $1,960 and the 50-day moving average level of approximately $1,914. We do not advise selling XAU/USD.

Support and Resistance Level: -
S1 1973.48-R1 2012.45
S2 1951.89-R2 2029.83
S3 1934.51-R3 2051.42


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