GOLD Price Analysis – June 23, 2023

Daily Price Outlook

The price of gold (XAU/USD) is poised to record its most significant weekly decline since late January as the US Dollar benefits from the market’s risk-off sentiment and the Federal Reserve’s (Fed) hawkish concerns.

Several central banks confirmed their commitment to maintaining higher interest rates for an extended period and expressed worries about the economic slowdown, particularly in the face of rising inflation and geopolitical tensions.

The mixed US economic data and the hawkish testimony of Federal Reserve Chairman Jerome Powell further contributed to the risk-off sentiment.

Additionally, Richmond Fed President Thomas Barkin joined US Treasury Secretary Janet Yellen in expressing economic concerns earlier on Friday.

The gold price forecast remains bearish as XAU/USD hovers near a multi-month low and remains vulnerable. During the Asian session on Friday, the gold price experienced bearish pressure and traded within a narrow range of $1,915 to $1,916, just above its lowest level since March 16 reached the previous day.

The gold price faces headwinds from major central banks adopting a hawkish stance. The series of interest rate hikes and a more hawkish outlook by major central banks have presented significant obstacles for gold, which does not yield interest.

The Bank of England (BoE), Swiss National Bank (SNB), and Norges Bank raised their key interest rates on Thursday. Additionally, the Reserve Bank of Australia (RBA) and Bank of Canada (BoC) surprised the market with 25 basis points rate hikes earlier this month.

Furthermore, the European Central Bank (ECB) recently raised interest rates to their highest level in 22 years and projected further tightening to address inflationary pressures.

GOLD Price Chart – Source: Tradingview

GOLD – Technical Analysis

Gold (XAU/USD) sets off with a touch of negativity today, as it puts pressure on the $1,913.15 level and attempts to break it, which supports the continuation of the bearish overview on the intraday and short-term basis, paving the way to head towards $1,873.50 areas as the next main station.

The bearish channel continues to organize the bearish wave, and the price is falling under continuous negative pressure coming from the EMA50, to keep the bearish trend valid and active conditioned by the price stability below $1,913.15.

Surpassing this level will lead the price to start recovery attempts and achieve gains that reach $1,945.20 before any new attempt to decline.

The expected trading range for today is between the support level of $1,890.00 and the resistance level of $1,925.00.