Published on Mar 27, 2023

Daily Analysis For GOLD (XAU/USD) 27-03-2023

Gold (XAU/USD) Analysis

Economic Events and Scenario for XAU/USD (GOLD)

Economic Events :-

GMT	Event	Impact	Currency
2:30	(China) Industrial Profits (YTD) YoY	Low	CNY
6:00	(Finland) Consumer Confidence	Low	EUR
6:00	(Finland) Business Confidence	Low	EUR
6:00	(Japan) Leading Economic Index	Low	JPY
6:00	(Japan) Coincident Index	Low	JPY
9:00	(Germany) Ifo Current Conditions	Low	EUR
9:00	(Germany) Ifo Business Climate	High	EUR
9:00	(Germany) Ifo Expectations	Low	EUR
9:00	(Euro Area) Loans to Companies YoY	Low	EUR
9:00	(Euro Area) M3 Money Supply YoY	Low	EUR
9:00	(Euro Area) Loans to Households YoY	Low	EUR
9:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
9:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
9:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
9:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
9:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
9:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
9:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
11:00	(United Kingdom) CBI Distributive Trades	Medium	GBP
11:00	(France) Jobseekers Total	Low	EUR
11:00	(France) Unemployment Benefit Claims	Medium	EUR
11:00	(Greece) Total Credit YoY	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
15:40	(Euro Area) ECB Elderson Speech	Medium	EUR
16:00	(Euro Area) ECB Schnabel Speech	Medium	EUR
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
18:00	(United States) 2-Year Note Auction	Low	USD
18:00	(United Kingdom) BoE Gov Bailey Speech	Medium	GBP
22:00	(United States) Fed Jefferson Speech	Medium	USD

Today's Scenario: - The price of gold, represented as XAU/USD, has declined by $1,970 over the course of the past two days, heading into Monday's European session. As a result, the precious metal is reflecting the recent rise in US Treasury bond yields and the US dollar.

Buy Scenario: - The Gold price has experienced a two-day decline and is currently at $1,970. The rebound in US Treasury bond yields and the US Dollar have contributed to this decline. However, a breakout above the resistance line of the triangle pattern, located at $2,003, could attract Gold buyers. The previous high on March 10, 2022, at $2,010, may pose a challenge for the bulls before they target the previous yearly high of around $2,070. Overall, the Gold price seems to be losing its bullish momentum, but a confirmation of a break below $1,955 is needed for the bears to take control. Till we did not advise to buy XAU/USD.

Selling Scenario: - The Gold price has been fluctuating within a short-term triangle formation, having recently ended a three-week upward trend. The fact that the XAU/USD price has been forming lower highs corresponds to the lower tops of the Relative Strength Index (RSI) line at 14, indicating further downward pressure. Additionally, the Moving Average Convergence and Divergence (MACD) indicator recently gave a bearish signal, further strengthening the downside bias.

Despite this, the lower boundary of the aforementioned triangle formation, which is currently at around $1,960, is preventing a sharp decline in the short term. Moreover, the 50-bar Simple Moving Average (SMA) is offering support around $1,955, making it challenging for the bears to take control.

If the Gold price breaks the $1,955 support level, it is possible that it may fall towards the 50% Fibonacci retracement of the XAU/USD's previous uptrend from late February to March 20, which is currently at around $1,906. We do not advise selling XAU/USD.

Support and Resistance Level: -