Published on Mar 23, 2023

Daily Analysis For GOLD (XAU/USD) 23-03-2023

Gold (XAU/USD) Analysis

Economic Events and Scenario for XAU/USD (GOLD)

Economic Events :-

GMT	Event	Impact	Currency
07:00	(Lithuania) Industrial Production YoY	Low	EUR
07:00	(Lithuania) Industrial Production MoM	Low	EUR
08:00	(European Union) European Council Meeting	Medium	EUR
08:30	(Switzerland) SNB Interest Rate Decision	Medium	CHF
09:00	(Greece) Current Account	Low	EUR
09:30	(Slovenia) Consumer Confidence	Low	EUR
11:30	(Germany) Bundesbank Balz Speech	Low	EUR
12:00	(United Kingdom) BoE Interest Rate Decision	High	GBP
12:00	(United Kingdom) MPC Meeting Minutes	Medium	GBP
12:00	(United Kingdom) BoE MPC Vote Hike	Medium	GBP
12:00	(United Kingdom) BoE MPC Vote Unchanged	Medium	GBP
12:00	(United Kingdom) BoE MPC Vote Cut	Medium	GBP
12:00	(United States) Building Permits	Medium	USD
12:00	(United States) Building Permits MoM	Low	USD
12:00	(Germany) undesbank Wuermeling Speech	Low	EUR
12:30	(United States) Current Account	Medium	USD
12:30	(United States) Jobless Claims 4-week Average	High	USD
12:30	(United States) Continuing Jobless Claims	High	USD
12:30	(United States) Initial Jobless Claims	High	USD
12:30	(United States) Chicago Fed National Activity Index	Medium	USD
14:00	(United States) New Home Sales MoM	High	USD
14:00	(United States) New Home Sales	High	USD
14:30	(United States) EIA Natural Gas Stocks Change	Low	USD
15:00	(Euro Area) Consumer Confidence	Medium	EUR
15:00	(United States) Kansas Fed Composite Index	Low	USD
15:00	(United States) Kansas Fed Manufacturing Index	Low	USD
15:00	(United Kingdom) BoE L Mann Speech	Medium	GBP
15:00	(Euro Area) ECB Lane Speech	Low	EUR
15:30	(United States) 8-Week Bill Auction	Low	USD
15:30	(United States) 4-Week Bill Auction	Low	USD
17:00	(United States) 10-Year TIPS Auction	Low	USD
22:00	(Australia) Judo Bank Manufacturing PMI	High	AUD
22:00	(Australia) Judo Bank Services PMI	High	AUD
22:00	(Australia) Judo Bank Composite PMI	Low	AUD
23:30	(Japan) Inflation Rate Ex-Food and Energy YoY	Low	JPY
23:30	(Japan) Inflation Rate YoY	High	JPY
23:30	(Japan) Inflation Rate MoM	Low	JPY
23:30	(Japan) Core Inflation Rate YoY	Medium	JPY
23:50	(Japan) Foreign Bond Investment	Low	JPY
23:50	(Japan) Stock Investment by Foreigners	Low	JPY

Today's Scenario: - Gold's price is showing strength as the US Dollar continues to weaken. The recent dovish policy guidance from the US Federal Reserve has caused US Treasury bond yields to decline. On the daily chart, XAU/USD is forming a bullish pennant pattern, with the Relative Strength Index (RSI) indicating a bullish trend.

Buy Scenario: - After the announcement from the Federal Reserve, Gold price is forming a potential bull pennant on the daily chart.

For the bullish pattern to be confirmed, Gold buyers need the price to close above the falling trendline resistance at $1,975.

If the price breaks above this level, it may test Tuesday's high at $1,985, and if it manages to surpass that, it may challenge the $2,000 round figure.

If the bullish momentum continues, the next resistance level for the bulls will be the yearly high at $2,010, and breaking above this level may lead the price towards the psychological barrier of $2,050. Till we did not advise to buy XAU/USD.

Selling Scenario: - In case gold prices fail to maintain their bullish momentum and retrace from higher levels, any dips could lead to a test of the intraday low at $1,965. Further downside moves may challenge the static support at $1,960.

If the selling pressure persists, the next support level to watch would be at $1,950. A break below this level could open the doors for a test of the falling trendline support, which is currently positioned at $1,926. We do not advise selling XAU/USD.

Support and Resistance Level: -