The price of gold, shown as #XAUUSD at 1,920.34, remains steady as the US Dollar weakens.

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• Gold price trades sideways amid US Dollar (USD) retreats.

The pair currently trades last at 1920.34.

The previous day high was 1929.75 while the previous day low was 1917.41. The daily 38.2% Fib levels comes at 1922.12, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1925.04, expected to provide resistance.

Gold price trades around $1,920 a troy ounce during the early trading hours in the Asian session on Monday. The precious metal struggles to hold ground near the previous weekly close, experiencing minor support due to the retreating in the US Dollar (USD).

US Dollar Index (DXY), which measures the performance of the Greenback against six other major currencies, is presently trading around 104.80 slightly below its peak since April. However, US Treasury yields rose, which could exert pressure on the price of the yellow metal. The yields on 10-year US Treasury bonds rose to 4.29%, up by 0.52%.

The buck is expected to remain robust, buoyed by the consistent flow of positive economic data concerning the state of the US economy. As said, US Initial Jobless Claims reported a reading of 216K on the week ending September 2, below the market consensus of 234K and the previous week’s revised figure of 229K.

Consumer Price Index (CPI) data for China in August was published on Saturday. The report indicated a year-on-year increase of 0.1%, which marked an improvement compared to the previous month’s figure of -0.3%. However, it fell short of market expectations, which had anticipated a 0.2% reading. This relatively soft CPI reading suggests that disinflationary pressures persist, and this could potentially influence downward pressure on the prices of Gold.

Market participants will better understand China’s economic situation through the week, including the challenges that authorities must address to implement the required monetary and fiscal measures to maintain Beijing’s target of achieving 5% GDP growth this year.

Furthermore, the US Federal Reserve (Fed) is expected to maintain higher interest rates for an extended duration. Additionally, there is an anticipation that the Fed will implement a 25 basis point (bps) interest rate hike by the conclusion of the year 2023. This hawkish stance from the central bank could exert significant downward pressure on Gold prices.

Moreover, investors seek more indications from the US Consumer Price Index (CPI) for August, which is due on Wednesday.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1920.12 at the time of writing. Pair opened at 1918.96 and is trading with a change of 0.06 % .

The pair is trading above its 20 Daily moving average @ 1915.98, below its 50 Daily moving average @ 1932.21 , below its 100 Daily moving average @ 1950.65 and above its 200 Daily moving average @ 1918.88

The previous day high was 1929.75 while the previous day low was 1917.41. The daily 38.2% Fib levels comes at 1922.12, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1925.04, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1914.33, 1909.7, 1901.99
• Pivot resistance is noted at 1926.67, 1934.38, 1939.01

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