XAUUSD GOLD Outlook

XAU/USD 1H Chart

XAU/USD 4H Chart

Gold Analysis for the Week

Key Support Level: $2,335.135

Key Resistance Level: $2,391.605

Gold prices have shown a mix of gains and declines this week, influenced by multiple factors. Investors are closely watching Federal Reserve Chairman Jerome Powell's upcoming testimony for clues on future monetary policy, causing gold prices to edge higher. However, gold experienced a significant drop of over 1% due to the People's Bank of China reducing its gold purchases for the second consecutive month. Despite these fluctuations, gold's performance remains tied to U.S. economic data and global geopolitical developments.

Overall Sentiment: Cautiously Bullish

Driven by anticipation of U.S. economic data and Federal Reserve signals, with potential downward pressure from reduced Chinese buying.

Key Influences:

• Federal Reserve Signals:Anticipation of Jerome Powell's testimony on monetary policy.

• U.S. Economic Data:Focus on Core CPI, CPI, and PPI for inflation trends.

• Geopolitical Risks:Global tensions continue to support safe-haven demand for gold.

• Chinese Buying:Reduced purchases by the People's Bank of China impacting gold prices.

Potential Movement:

XAU/USD is likely to experience cautious upward movement, contingent on the U.S. economic data outcomes and Federal Reserve signals. Watch for potential volatility around key events such as Powell's testimony and inflation data releases.

Important Economic Calendar Events for This Week (GMT +8)

USA:

• NFIB Small Business Optimism (Jun)– July 9, 2024, 18:00

• Description:Measures the level of optimism among small businesses in the USA.

• Impact:Higher optimism can indicate economic confidence and potential growth, affecting gold prices.

• Core CPI (MoM) (Jun)– July 11, 2024, 20:30

• Description:Measures the change in the price of goods and services, excluding food and energy.

• Impact:Higher-than-expected core inflation could strengthen USD and pressure gold prices. Lower-than-expected core inflation could support gold.

• CPI (YoY) (Jun)– July 11, 2024, 20:30

• Description:Measures the annual change in the price of goods and services.

• Impact:Higher inflation could strengthen USD, weakening gold. Lower inflation could support gold.

• Initial Jobless Claims– July 11, 2024, 20:30

• Description:Measures the number of individuals who filed for unemployment insurance for the first time during the past week.

• Impact:Lower claims could strengthen USD, pressuring gold. Higher claims could support gold.

• PPI (MoM) (Jun)– July 12, 2024, 20:30

• Description:Measures the change in the price of goods sold by manufacturers.

• Impact:Higher producer prices could strengthen USD, pressuring gold. Lower prices could support gold.

• Michigan Consumer Sentiment (Jul)– July 12, 2024, 22:00

• Description:Measures the level of consumer confidence in economic activity.

• Impact:Higher sentiment could strengthen USD, weakening gold. Lower sentiment could support gold.