The XAU/USD pair is correcting in a downtrend at 1764.00 amid strengthening US dollar positions: the quotes rose from 105.300 to 106.600 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 50.0 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.
Serious changes continue in demand for the asset from investors. According to the latest report from the US Commodity Futures Trading Commission (CFTC), last week, net speculative positions in gold increased from 124.3K to 142.9K. This week, buyers held the lead in cash-backed contracts, adding 3.36K positions, while the number of transactions with sellers decreased by 21.539K.
On the weekly chart of the asset, the price is above the resistance line of the global downward channel with dynamic boundaries 1780.0–1650.0.
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: 1782.0, 1847.0. | Support levels: 1753.0, 1696.0.