Published on Apr 24, 2023

Daily Analysis For GOLD (XAU/USD) 24-04-2023

Gold (XAU/USD) Analysis

Economic Events and Scenario for XAU/USD (GOLD)

Economic Events :-

GMT	Event	Impact	Currency
06:00	(Finland) PPI YoY	Low	EUR
06:00	(Finland) Export Prices YoY	Low	EUR
06:00	(Finland) Import Prices YoY	Low	EUR
07:00	(Lithuania) Industrial Production YoY	Low	EUR
07:00	(Lithuania) Industrial Production MoM	Low	EUR
09:00	(Germany) Ifo Current Conditions	Low	EUR
09:00	(Germany) Ifo Expectations	Low	EUR
09:00	(Germany) Ifo Business Climate	High	EUR
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
09:30	(Slovenia) Business Confidence	Low	EUR
13:30	(Canada) New Housing Price Index MoM	Medium	CAD
13:30	(Canada) New Housing Price Index YoY	Medium	CAD
13:30	(United States) Chicago Fed National Activity Index	Medium	USD
13:30	(Canada) Wholesale Sales MoM	Low	CAD
14:00	(Belgium) Business Confidence	Low	EUR
14:00	(France) 3-Month BTF Auction	Low	EUR
14:00	(France) 12-Month BTF Auction	Low	EUR
14:00	(France) 6-Month BTF Auction	Low	EUR
15:30	(United States) Dallas Fed Manufacturing Index	Medium	USD
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
17:00	(Canada) 3-Year Bond Auction	Low	CAD
18:00	(El Salvador) Balance of Trade	Low	USD

Today's Scenario: - During the Asian trading session, the value of gold (XAU/USD) remains stable above the crucial support level of $1,980.00. The precious metal is currently experiencing some difficulty hovering around $1,985.00, likely due to the mixed signals presented by the US Dollar Index (DXY) regarding its crucial support level of 101.63. Over the past four trading sessions, the DXY has been fluctuating wildly in a wide range of 101.63-102.27, causing investors to anticipate a decisive move in the near future.

Investors are keeping a close eye on the DXY, hoping for a clear indication of its direction as it could have significant implications for the gold market. Should the DXY break below its support level, it may prompt a surge in the value of gold as investors flock to the safe haven asset to hedge against inflation and other economic uncertainties.

Buy Scenario: - On the daily timeframe, the price of gold is currently testing the lower boundary of an ascending channel that started from the low of $1,934. The precious metal is also struggling to stay above the widely-watched $2,000 level. If the current channel support is broken, the next support levels to consider are $1,949 and the 50-day simple moving average at $1,919. Additionally, a longer-term channel support extended from the low of $1,916 may come into play.

On a shorter-term timeframe, the H1 scale shows that the price has rebounded from the support level of $1,972, which coincides with the local channel support on the daily timeframe. If this rebound continues, the price may reach the H1 resistance levels of $1,992 and $2,001, located just below $2,000. Till we did not advise to buy XAU/USD.

Selling Scenario: - Overall, the charts suggest that bearish players may have the upper hand in the medium term, especially if the price breaks below the weekly support level at $1,988. If additional recovery gains occur, sellers may try to enter the market in the range between $2,000 and $1,992 on the H1 timeframe. However, if the price fails to hold above this range, a close below the support level of $1,972 could trigger a breakout, leading sellers to aim for H1 support at $1,964 and $1,955. We do not advise selling XAU/USD.

Support and Resistance Level: -