XAUUSD - Investor demand for gold is actively increasing
The XAUUSD pair is correcting in a downtrend at 1764 amid strengthening US dollar positions: the quotes rose from 105.3 to 106.6 in the USD Index due to several factors, including confirmation of the US Federal Reserve's plans to tighten monetary policy. Thus, the minutes of the meeting of the Federal Open Market Committee (FOMC), published yesterday, outlined the department's plans for September, which include raising interest rates by at least 50 basis points to combat record inflation.
Another factor in the local downward dynamics of gold was data on industrial production in China: the figure was 3.8%, which is lower than 3.9% a month earlier and significantly lower than 4.6% expected by analysts, which confirmed investors' fears about the stability of the economy of one of the largest importers and producers of precious metals.
On the weekly chart of the asset, the price is above the resistance line of the global downward channel with dynamic boundaries 1780 – 1650. Despite the local slowdown, technical indicators strengthen the buy signal: fast EMAs on the Alligator indicator are moving above the signal line, while the AO oscillator histogram remains in the buy zone.
Resistance levels: 1782, 1847 | Support levels: 1753, 1696