GOLD Price Analysis – July 18, 2023

Daily Price Outlook

The Gold Price (XAU/USD) is experiencing positive momentum as traders reassess concerns related to China, leading to an improved risk-on sentiment.

The US Dollar's recovery since late Friday has been short-lived, coupled with lackluster data, which has strengthened the demand for Gold. Consequently, Gold buyers are now gearing up for a potential challenge to surpass the significant $2,000 level.

Several positive factors are contributing to cautious optimism in the market. China's ability to defend its economic growth and signs of improving relations with the US are among the catalysts supporting the sentiment.

Despite positive consumer-focused figures on Friday, the US NY Empire State Manufacturing Index failed to impress Dollar bulls.

Additionally, expectations of further stimulus measures from China and challenges faced by restrictive monetary policies are providing support for the Gold Price.

In the coming days, market participants will closely monitor US Retail Sales and Industrial Production data for June, as they will play a crucial role in shaping the Federal Reserve's rate hike trajectory beyond July. These data releases could also have an impact on the movements of the Gold Price.

Gold (XAU/USD) Technical analysis

Gold prices tested the $1,945.20 level and exhibited a bullish bounce, indicating a potential resumption of the anticipated bullish movement on an intraday basis. The initial target for this upward wave is set at the $1,977.25 level.

The presence of the EMA50 provides support for the expected rise, which is further reinforced by the double bottom pattern observed on the chart. These factors increase the likelihood of surpassing the aforementioned target and heading towards the $2,000.00 level, followed by the $2,016.90 area as the next significant milestones.

As long as the price remains above the $1,945.20 level, the bullish trend scenario remains valid and in play. A breach of this level, followed by a drop below the $1,935.10 level, would raise concerns and potentially negate the bullish outlook.

Today's expected trading range is between support at $1,945.00 and resistance at $1,980.00.

Overall, the outlook for today remains bullish, with the potential for further upward movement in gold prices.