Daily Analysis For GOLD (XAU/USD) 23-05-2023

Daily Analysis For GOLD (XAU/USD) 23-05-2023

Gold (XAU/USD) Analysis
Gold (XAU/USD)
Economic Events and Scenario for XAU/USD (GOLD)
Economic Events :-
GMTEventImpactCurrency
00:00(Australia) Judo Bank Composite PMILowAUD
00:00(Australia) Judo Bank Manufacturing PMIHighAUD
00:00(Australia) Judo Bank Services PMIHighAUD
01:00(Montenegro) Independence DayNoneEUR
01:30(Japan) Jibun Bank Manufacturing PMIMediumJPY
01:30(Japan) Jibun Bank Services PMIMediumJPY
01:30(Japan) Jibun Bank Composite PMILowJPY
07:00(Lithuania) Industrial Production MoMLowEUR
07:00(Lithuania) Industrial Production YoYLowEUR
07:00(United Kingdom) Public Sector Net BorrowingLowGBP
07:00(United Kingdom) Public Sector Net Borrowing Ex BanksLowGBP
08:00(Slovakia) Current AccountLowEUR
08:15(France) S&P Global Composite PMILowEUR
08:15(France) S&P Global Manufacturing PMIMediumEUR
08:15(France) S&P Global Services PMIMediumEUR
08:15(Euro Area) ECB Guindos SpeechHighEUR
08:15(Euro Area) ECB Jochnick SpeechLowEUR
08:30(Germany) S&P Global Composite PMILowEUR
08:30(Germany) S&P Global Services PMIHighEUR
08:30(Germany) S&P Global Manufacturing PMIHighEUR
09:00(Euro Area) Current AccountLowEUR
09:00(Euro Area) S&P Global Composite PMILowEUR
09:00(Euro Area) S&P Global Services PMIHighEUR
09:00(Euro Area) S&P Global Manufacturing PMIHighEUR
09:00(Euro Area) Current Account s.aLowEUR
09:30(Slovenia) Consumer ConfidenceLowEUR
09:30(United Kingdom) S&P Global/CIPS Manufacturing PMIHighGBP
09:30(United Kingdom) S&P Global/CIPS UK Services PMIHighGBP
09:30(United Kingdom) S&P Global/CIPS Composite PMILowGBP
10:00(Italy) Current AccountLowEUR
10:00(United Kingdom) 28-Year Index-Linked Treasury Gilt AuctionLowGBP
10:30(Germany) 2-Year Schatz AuctionLowEUR
11:00(Latvia) PPI YoYLowEUR
11:00(Latvia) PPI MoMLowEUR
11:25(Euro Area) ECB Enria SpeechLowEUR
13:00(United States) Building PermitsMediumUSD
13:00(United States) Building Permits MoMLowUSD
13:30(Canada) Raw Materials Prices YoYLowCAD
13:30(Canada) Raw Materials Prices MoMLowCAD
13:30(Canada) PPI YoYLowCAD
13:30(Canada) PPI MoMLowCAD
13:55(United States) Redbook YoYLowUSD
14:00(United States) Fed Logan SpeechMediumUSD
14:45(United States) S&P Global Services PMIHighUSD
14:45(United States) S&P Global Composite PMIMediumUSD
14:45(United States) S&P Global Manufacturing PMIHighUSD
15:00(United States) Richmond Fed Manufacturing Shipments IndexLowUSD
15:00(United States) New Home Sales MoMHighUSD
15:00(United States) Richmond Fed Services IndexLowUSD
15:00(United States) New Home SalesHighUSD
15:00(United States) Richmond Fed Manufacturing IndexLowUSD
15:30(Slovenia) Unemployment RateLowEUR
18:00(United States) 2-Year Note AuctionLowUSD
20:00(El Salvador) Balance of TradeLowUSD
21:30(United States) API Crude Oil Stock ChangeMediumUSD
23:45(New Zealand) Retail Sales YoYHighNZD
23:45(New Zealand) Retail Sales QoQHighNZD

Today's Scenario: - The price of gold (XAU/USD) continues to decline, reaching an intraday low near $1,961. This marks the second consecutive day of losses, as the precious metal retraces its corrective bounce from Friday. The main factor weighing on gold is the strength of the US Dollar, which has been supported by positive sentiment regarding negotiations to avoid a US default. The US Dollar Index (DXY) has been grinding higher, currently around 103.30, reflecting a two-day uptrend.
Despite the lack of a debt ceiling deal between US President Joe Biden and House Speaker Kevin McCarthy, policymakers remain optimistic about reaching an agreement. President Biden described the meeting with Speaker McCarthy as productive in terms of the need to prevent default, while McCarthy also acknowledged the productive nature of the meeting but indicated that no debt ceiling deal has been reached.
The upcoming release of Purchasing Managers Indexes (PMI) for May from leading economies, including the US, adds to the cautious sentiment surrounding gold. The stronger US Dollar and the anticipation of economic data may influence the direction of gold prices in the short term.

Buy Scenario: - On the upside, if gold manages to break above the immediate resistance-turned-resistance line at around $1,965, it doesn't guarantee a strong rally for buyers. The 100-hour moving average (HMA) resistance near $1,974 and a downward-sloping resistance line from May 11, around $1,977, will present additional hurdles for the XAU/USD upside movement.
Furthermore, a three-week descending resistance line near $1,989 will act as a final defense for the gold bears.
Overall, the gold price is expected to experience further downside, although reaching the $1,900 level may prove to be a challenging and volatile journey. Till we did not advise to buy XAU/USD.

Selling Scenario: - The price of gold (XAU/USD) is facing downward pressure as it breaks below a three-day ascending support line, which now serves as immediate resistance around $1,965. This suggests a continued downside bias for gold. The bearish signals from the Moving Average Convergence Divergence (MACD) indicator further support the bearish outlook. However, it's worth noting that the monthly low around $1,950 may attract some selling pressure, as the Relative Strength Index (RSI) indicates oversold conditions.
If the gold price remains bearish and falls below $1,950, the next target for sellers could be the late March swing low near $1,935. We do not advise selling XAU/USD.

Support and Resistance Level: -
SupportResistance
S1 1966.36-R1 1980.04
S2 1960.81-R2 1988.17
S3 1952.68-R3 1993.72

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