#XAUUSD @ 1724.59 Gold catches fresh bids on Monday and turns positive for the second successive day. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• Gold catches fresh bids on Monday and turns positive for the second successive day.
• The prevalent USD selling bias turns out to be a key factor boosting the commodity.
• A positive risk tone, the prospects for more aggressive central banks continue to cap.

The pair currently trades last at 1724.59.

The previous day high was 1729.57 while the previous day low was 1708.45. The daily 38.2% Fib levels comes at 1721.5, expected to provide support. Similarly, the daily 61.8% fib level is at 1716.52, expected to provide support.

Gold attracts some dip-buying near the $1,712 area on Monday and turns positive for the second straight day. The XAU/USD refreshes daily high, around the $1,726-$1,727 region during the European session and moves back closer to a one-and-half-week high touched on Friday.

The US dollar extends last week’s sharp retracement slide from a two-decade high and remains under intense selling pressure on the first day of a new week. In fact, the USD Index, which measures the greenback’s performance against a basket of currencies, dives to a fresh monthly low and offers support to the dollar-denominated gold.

Given that the markets have already priced in a 75 bps Fed rate hike move in September, subdued action around the US Treasury bond yields turns out to be a key factor weighing on the greenback. Apart from this, growing worries about a deeper global economic downturn further contribute to driving flows towards safe-haven gold.

That said, a positive risk tone – as depicted by a generally upbeat mood around the equity markets – could act as a headwind for the precious metal. Furthermore, the prospects for a more aggressive policy tightening by major central banks warrant some caution before positioning for any further appreciating move for the non-yielding gold.

Investors might also prefer to move to the sidelines ahead of the latest US consumer inflation figures, due for release on Tuesday. The crucial US CPI report will influence the Fed’s policy outlook and dictate the near-term USD trajectory. This, in turn, will help investors to determine the next leg of a directional move for gold.

In the meantime, the XAU/USD is more likely to enter a consolidation phase amid absent relevant market-moving economic data from the US. That said, the US bond yields, the USD price dynamics, along with the broader risk sentiment, might still provide some impetus to gold and allow traders to grab short-term opportunities.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1722.51 at the time of writing. Pair opened at 1716.82 and is trading with a change of 0.33 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1734.78, 50 SMA 1743.86, 100 SMA @ 1795.67 and 200 SMA @ 1833.55.

The previous day high was 1729.57 while the previous day low was 1708.45. The daily 38.2% Fib levels comes at 1721.5, expected to provide support. Similarly, the daily 61.8% fib level is at 1716.52, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1706.99, 1697.16, 1685.87
• Pivot resistance is noted at 1728.11, 1739.4, 1749.23

[/s2If]
Join Our Telegram Group