Published on May 24, 2023

Daily Analysis For GOLD (XAU/USD) 24-05-2023

Gold (XAU/USD) Analysis

Economic Events and Scenario for XAU/USD (GOLD)

Economic Events :-

GMT	Event	Impact	Currency
00:00	(Japan) Reuters Tankan Index	Medium	JPY
01:00	(Ecuador) The Battle of Pichincha	None	USD
02:00	(Australia) Westpac Leading Index MoM	Low	AUD
03:00	(New Zealand) RBNZ Interest Rate Decision	Medium	NZD
04:00	(East Timor) Inflation Rate YoY	Low	USD
04:00	(East Timor) Inflation Rate MoM	Low	USD
04:00	(New Zealand) RBNZ Press Conference	Medium	NZD
06:00	(Finland) Export Prices YoY	Low	EUR
06:00	(Finland) Import Prices YoY	Low	EUR
06:00	(Finland) PPI YoY	Low	EUR
06:00	(Finland) Unemployment Rate	Low	EUR
07:00	(United Kingdom) Core Inflation Rate MoM	Low	GBP
07:00	(United Kingdom) PPI Output YoY	Low	GBP
07:00	(United Kingdom) PPI Input YoY	Low	GBP
07:00	(United Kingdom) PPI Input MoM	Low	GBP
07:00	(United Kingdom) PPI Output MoM	Low	GBP
07:00	(United Kingdom) Inflation Rate MoM	Medium	GBP
07:00	(United Kingdom) Core Inflation Rate YoY	Medium	GBP
07:00	(United Kingdom) Inflation Rate YoY	High	GBP
07:00	(United Kingdom) PPI Core Output YoY	Low	GBP
07:00	(United Kingdom) PPI Core Output MoM	Low	GBP
07:00	(United Kingdom) Retail Price Index YoY	Low	GBP
07:00	(United Kingdom) Retail Price Index MoM	Low	GBP
08:00	(Euro Area) ECB Non-Monetary Policy Meeting	Medium	EUR
08:10	(Australia) RBA Jacobs Speech	Medium	AUD
09:00	(Germany) Ifo Expectations	Low	EUR
09:00	(Germany) Ifo Current Conditions	Low	EUR
09:00	(Germany) Ifo Business Climate	High	EUR
10:30	(Germany) 15-Year Bund Auction	Low	EUR
10:30	(United Kingdom) BoE Gov Bailey Speech	Medium	GBP
11:00	(United Kingdom) CBI Industrial Trends Orders	Medium	GBP
12:00	(United States) MBA 30-Year Mortgage Rate	Medium	USD
12:00	(United States) MBA Mortgage Applications	Low	USD
12:00	(United States) MBA Mortgage Refinance Index	Low	USD
12:00	(United States) MBA Mortgage Market Index	Low	USD
12:00	(United States) MBA Purchase Index	Low	USD
14:00	(Belgium) Business Confidence	Low	EUR
15:30	(United States) EIA Refinery Crude Runs Change	Low	USD
15:30	(United States) EIA Crude Oil Stocks Change	Medium	USD
15:30	(United States) EIA Heating Oil Stocks Change	Low	USD
15:30	(United States) EIA Distillate Stocks Change	Low	USD
15:30	(United States) EIA Gasoline Production Change	Low	USD
15:30	(United States) EIA Crude Oil Imports Change	Low	USD
15:30	(United States) EIA Gasoline Stocks Change	Medium	USD
15:30	(United States) EIA Cushing Crude Oil Stocks Change	Low	USD
15:30	(United States) EIA Distillate Fuel Production Change	Low	USD
16:30	(United States) 17-Week Bill Auction	Low	USD
16:30	(United States) 2-Year FRN Auction	Low	USD
17:00	(Canada) 10-Year Bond Auction	Low	CAD
17:10	(United States) Fed Waller Speech	Medium	USD
18:00	(United States) 5-Year Note Auction	Low	USD
18:45	(Euro Area) ECB President Lagarde Speech	Medium	EUR
19:00	(United States) FOMC Minutes	High	USD

Today's Scenario: - The price of gold (XAU/USD) is currently trading around $1,975 as it enters Wednesday's European session. The precious metal appears to be experiencing a period of indecision as market participants have mixed sentiments and adopt a cautious stance ahead of important data and events. Previously, gold benefitted from the decline in the US Dollar, which was triggered by the impasse in the debt ceiling negotiations. The retreat in US Treasury bond yields, coupled with mostly positive US PMIs, may further support the bullish sentiment for the US Dollar.

However, overall market sentiment remains subdued as investors await developments in the US debt ceiling talks and the release of the Federal Open Market Committee (FOMC) Monetary Policy Meeting Minutes.

Buy Scenario: - On the upside, the immediate resistance for the Gold price is seen around $1,985, which is the Pivot Point one-day R1 and the upper line of the Bollinger on the four-hour chart. If the price manages to surpass this level, the Fibonacci 61.8% level on the one-week chart, around $1,997, will be the next hurdle before reaching the psychological level of $2,000, which could attract further buying interest from XAU/USD traders.

It's important to note that technical indicators provide a framework for analysis, but it's always advisable to consider other factors and conduct thorough research before making any trading decisions. Till we did not advise to buy XAU/USD.

Selling Scenario: - According to our Technical Confluence Indicator, the support confluence for the Gold price is currently around $1,970. This confluence includes the middle band of the Bollinger on the four-hour chart, the Fibonacci 38.2% level on the one-day chart, and the Fibonacci 23.6% level on the one-week chart.

If the Gold price remains bearish and breaks below the $1,970 support, there is a possibility of a decline towards the previous swing low of $1,934. However, it is worth noting that the lower band of the Bollinger on the Daily chart, around $1,950, may act as an intermediate support during the decline between $1,970 and $1,934. We do not advise selling XAU/USD.

Support and Resistance Level: -