GOLD Price Analysis – July 11, 2023

Daily Price Outlook

During Tuesday's Asian session, gold experienced a slight uptick in price. However, it lacks strong bullish sentiment and remains significantly below a key resistance level tested last week, near $1,935. Currently, traders are cautiously trading XAU/USD above the $1,925 mark, registering a modest gain of just over 0.10% for the day.

The weakening US Dollar provides support to the gold price.

The upcoming release of the US Consumer Price Index (CPI) holds significant importance for the Federal Reserve's near-term policy stance, which, in turn, will impact the demand for the US Dollar and potentially drive momentum in the gold price.

As the US Dollar continues to decline for the fourth consecutive day, reaching its lowest level since May 11, there is growing belief that the US central bank is nearing the end of its policy tightening cycle. This sentiment bolsters the value of gold, which is denominated in US Dollars.

Additionally, the latest US monthly employment figures, released on Friday, indicating a slowdown in the labor market, further contribute to the weakening US Dollar.

Gold Price Forecast: XAU/USD bulls target the $1,930 level amid US Dollar pressure from inflation concerns

Following a lackluster start to the week, the gold price (XAU/USD) has gained momentum and reached an intraday high around $1,928 during the mid-Asian session on Tuesday.

It is noteworthy that the primary driver behind the movements in XAU/USD appears to be the general weakness of the US Dollar, which is influenced by concerns over negative job and inflation data in the United States.

Consequently, the precious metal seems to be disregarding economic worries stemming from China and the hawkish tone of the Federal Reserve's speeches.

GOLD Price Chart – Source: Tradingview

Gold (XAU/USD) Technical analysis

Gold prices remain modestly bullish around the $1,930.00 level, demonstrating resilience below $1,934. Despite a slight loss of positive momentum indicated by the stochastic indicator, there is potential for the expected uptrend to resume on an intraday basis.

The initial target for this bullish move is at $1,913.15, with a break above this level possibly pushing the price towards the next significant target at $1,873.50.

Sustaining a position above $1,929.00 is crucial to maintain the anticipated upward momentum. If the price successfully breaches this level, it could lead to short-term gains, with the $1,945.20 level becoming a potential testing ground before any renewed negative attempts.

For today's trading, the projected range is expected to be between the support level at $1,905.00 and the resistance level at $1,940.00.

Overall, the outlook for today suggests a bullish trend in the gold market.