#XAUUSD @ 1723.58 Gold struggles to gain any meaningful traction and remains confined in a range on Tuesday. (Pivot Orderbook analysis)

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• Gold struggles to gain any meaningful traction and remains confined in a range on Tuesday.
• The risk-on impulse, elevated US bond yields seem to act as a headwind for the commodity.
• The prevalent USD selling bias continues to offer support ahead of the crucial US CPI report.

The pair currently trades last at 1723.58.

The previous day high was 1735.17 while the previous day low was 1712.02. The daily 38.2% Fib levels comes at 1726.33, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1720.86, expected to provide support.

Gold lacks any firm direction on Tuesday and seesaws between tepid gains/minor losses, above the $1,720 level through the early European session. The XAU/USD remains below a nearly two-week high touched the previous day as investors now await the latest US consumer inflation figures for a fresh impetus.

A survey released by the Federal Reserve Bank of New York on Monday that consumer expectations for US inflation over the coming years declined sharply to the lowest level since October last year. Hence, the US CPI report will be looked upon for signs of a sustained decline in US inflation. This could raise expectations for less aggressive policy tightening by the Fed, which, in turn, could help gold to gain some meaningful traction.

In the meantime, the risk-on mood – as depicted by a positive tone around the equity markets – is seen acting as a headwind for the safe-haven precious metal. This, along with elevated US Treasury bond yields, contributes to capping the upside for gold. The US dollar, meanwhile, languishes near the monthly low touched the previous day and might continue to lend some support to the dollar-denominated commodity, at least for the time being.

Heading into the key data risk, investors also seem reluctant to place aggressive bets around gold and prefer to move to the sidelines. This is seen as another factor leading to subdued/range-bound price action and warrants caution before positioning for an extension of the recent recovery from the sub-$1,700 round-figure mark.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1723.05 at the time of writing. Pair opened at 1724.58 and is trading with a change of -0.09 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1732.03, 50 SMA 1742.21, 100 SMA @ 1793.94 and 200 SMA @ 1833.26.

The previous day high was 1735.17 while the previous day low was 1712.02. The daily 38.2% Fib levels comes at 1726.33, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1720.86, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1712.68, 1700.77, 1689.53
• Pivot resistance is noted at 1735.83, 1747.07, 1758.98

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