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Gold Price Under Selling Pressure


  • Throughout the last week’s trading, the price of an ounce of gold, XAU/USD, was exposed to profit-taking sales.
  • This occurrence can happen at any time.
  • Those moves pushed the XAU/USD gold price towards the support level at $1969 an ounce, before closing the week’s trading, stable around the level of $1982 an ounce.

The gold price XAU/USD is trading affected by the results of the recent economic data as the global manufacturing PMI of Standard & Poor’s in the US for April outperformed the expected reading at 49 with a reading of 50.4. The Services PMI also beat expectations by 51.5 with a reading of 53.7, while the Composite PMI beat expectations at 52.8 with a reading of 53.5. Prior to that, US Initial Jobless Claims for the week ending April 14th exceeded the expected claims count at 240K with a figure slightly above 245K, while the previous week’s Continuing Claims lost 1.82M with a figure of 1.865M.


The Philadelphia Fed Preliminary Manufacturing Survey for April missed the expected reading of -19.2 with a reading of -31.3. US Building Approvals for the month of March missed expectations (MoM) at 1.45M with a tally of 1.413M, while Housing Starts for the period beat the expected number of 1.4M with a tally of 1.42M.

China’s economy grew in the first quarter at its fastest pace in a year, putting Beijing on track to meet its 2023 growth target without adding major stimulus, while also helping to protect the global economy from deflation. Gross domestic product grew 4.5% in the fourth quarter from the previous year, beating economists’ expectations. In March, retail sales rose 10.6% year-on-year, the most since June 2021.

According to United Nations data, India overtook China as the world’s most populous country. India’s population has surpassed 1.4286 billion, slightly higher than China’s 1.4257 billion, according to mid-2023 estimates. India, where half of the population is under the age of 30, is expected to become the fastest growing major economy in the world in the coming years. China will be the largest contributor to global economic growth over the next five years, with its share expected to be twice that of the United States, according to the International Monetary Fund. Brazil, Russia, India and China are expected to add nearly 40% of global growth through 2028.

Major central banks may be struggling to contain inflation, but at least they are making progress toward another goal: clear speaking. According to research by economists at the Bank of France, people need five fewer years of education to understand the Federal Reserve’s monetary policy statement since a review by officials in August 2020.

In the near term and according to the performance of the hourly chart, it appears that the XAU/USD gold price is trading within a bearish channel formation. This indicates a significant short-term bearish bias in market sentiment. Therefore, the bears will look to extend the current declines towards $1972 or lower to $1958 an ounce. On the other hand, the bulls will look to pounce on potential rebound profits at around $1988 or higher at $1997 an ounce.

On the long term, and according to the performance on the daily chart, it appears that the XAU/USD gold price has recently completed a bearish breach from forming an ascending channel. This indicates a significant change in market sentiment from bullish to bearish. Therefore the bulls will target the extended decline profit at around $1,950 or lower at $1,915 an ounce. On the other hand, the bulls will look to pounce on profits at around $2011 or higher at $2048 an ounce.

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