Daily Analysis For GOLD (XAU/USD) 22-05-2023

Daily Analysis For GOLD (XAU/USD) 22-05-2023

Gold (XAU/USD) Analysis
Gold (XAU/USD)
Economic Events and Scenario for XAU/USD (GOLD)
Economic Events :-
GMTEventImpactCurrency
00:50(Japan) Machinery Orders YoYMediumJPY
00:50(Japan) Machinery Orders MoMMediumJPY
01:00(Canada) Victoria DayNoneCAD
01:00(Montenegro) Independence DayNoneEUR
02:15(China) Loan Prime Rate 1YMediumCNY
02:15(China) Loan Prime Rate 5YMediumCNY
05:30(Netherlands) Consumer ConfidenceMediumEUR
06:00(Estonia) PPI YoYLowEUR
06:00(Estonia) PPI MoMLowEUR
07:30(Switzerland) Industrial Production YoYMediumCHF
08:00(Slovakia) Current AccountLowEUR
09:00(Greece) Current AccountLowEUR
09:00(Australia) Myfxbook AUDUSD SentimentMediumAUD
09:00(Switzerland) Myfxbook USDCHF SentimentMediumCHF
09:00(Japan) Myfxbook USDJPY SentimentMediumJPY
09:00(European Union) Myfxbook EURUSD SentimentMediumEUR
09:00(United Kingdom) Myfxbook GBPUSD SentimentMediumGBP
09:00(Canada) Myfxbook USDCAD SentimentMediumCAD
09:00(New Zealand) Myfxbook NZDUSD SentimentMediumNZD
10:00(Belgium) Consumer ConfidenceLowEUR
10:00(Euro Area) Construction Output YoYLowEUR
10:45(European Union) EU Bond AuctionLowEUR
11:00(Ireland) Wholesale Prices MoMLowEUR
11:00(Ireland) Wholesale Prices YoYLowEUR
11:00(Luxembourg) Unemployment RateLowEUR
11:30(Portugal) Current AccountLowEUR
13:00(Kosovo) Balance of TradeLowEUR
13:30(United States) Fed Bullard SpeechMediumUSD
14:00(France) 3-Month BTF AuctionLowEUR
14:00(France) 12-Month BTF AuctionLowEUR
14:00(France) 6-Month BTF AuctionLowEUR
15:00(Euro Area) Consumer ConfidenceMediumEUR
15:50(United States) Fed Barkin SpeechMediumUSD
15:50(United States) Fed Bostic SpeechMediumUSD
16:30(United States) 3-Month Bill AuctionLowUSD
16:30(United States) 6-Month Bill AuctionLowUSD
20:00(El Salvador) Balance of TradeLowUSD

Today's Scenario: - The price of gold (XAU/USD) has experienced a two-week downtrend but is currently showing signs of a corrective bounce as markets prepare for important data and events. The rebound in the precious metal can be attributed to mixed concerns regarding the expiration of the US debt ceiling. While President Joe Biden remains hopeful of avoiding default, Republicans appear less inclined to compromise, which has stalled previous negotiations. Additionally, a shift in the tone of Federal Reserve Chair Jerome Powell, who has cited concerns about the banking sector as a reason to ease pressure for higher interest rates, has also supported an upward movement in XAU/USD. Furthermore, positive expectations from China have added strength to gold buyers as they contend with bearish sentiment.
On the other hand, the recent improvement in US economic data and expectations of a more hawkish stance from the Federal Reserve have exerted downward pressure on the price of gold. This highlights the significance of this week's US Purchasing Managers' Index (PMIs) and the Core Personal Consumption Expenditures (PCE) Price Index, which is the Fed's preferred measure of inflation, in determining the near-term direction of XAU/USD.

Buy Scenario: - According to our Technical Confluence Indicator, the price of gold is currently facing strong resistance around the $1,990 level. This resistance level is formed by the confluence of the 50-day moving average, Fibonacci 68.1% retracement level on a one-month timeframe, and the upper band of the Bollinger Bands on the hourly chart.
Before reaching this resistance confluence, the previous daily high and the 5-day moving average act as immediate barriers for any upside movement, with a resistance zone around $1,984.
Further to the upside, the upper band of the Bollinger Bands on the four-hour chart and Fibonacci 68.1% retracement level on a one-week timeframe indicate a potential hurdle near $1,995, followed by the key psychological level of $2,000, which coincides with Pivot Point one-day R2. Till we did not advise to buy XAU/USD.

Selling Scenario: - On the downside, there is support around $1,970, which is formed by the convergence of the Fibonacci 38.2% retracement level on a one-day timeframe and the middle band of the Bollinger Bands on the hourly chart. If this support is breached, the Fibonacci 23.6% retracement level on a one-week timeframe near $1,968 could come into play, potentially pushing the price lower towards the key support level at $1,954. This support level is formed by the lower band of the Bollinger Bands on the four-hour chart and the previous daily low.
It's important to note that a sustained weakness below $1,954 could give the bears more control over the gold price. We do not advise selling XAU/USD.

Support and Resistance Level: -
SupportResistance
S1 1959.90-R1 1990.07
S2 1941.91-R2 2002.25
S3 1929.73-R3 2020.24

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