#XAUUSD @ 1691.87 Gold prices are declining sharply towards $1,690.00 as odds for a Fed’s full percent rate hike soar. (Pivot Orderbook analysis)

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• Gold prices are declining sharply towards $1,690.00 as odds for a Fed’s full percent rate hike soar.
• The road to a neutral stance policy for the Fed is far from over.
• The preliminary estimates for the US Retail Sales are displaying stagnation.

The pair currently trades last at 1691.87.

The previous day high was 1707.2 while the previous day low was 1693.76. The daily 38.2% Fib levels comes at 1698.89, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1702.07, expected to provide resistance.

Gold price (XAU/USD) has shifted into a negative trajectory as the asset has slipped below Wednesday’s low at $1,693.67. The precious metal is declining towards $1,690.00 as bears are taking charge of soaring odds for a bumper rate hike by the Federal Reserve (Fed) ahead.

Tuesday’s higher-than-expected release of the US Consumer Price Index (CPI) has faded the signs of exhaustion recorded earlier. Despite falling gasoline prices, the headline US CPI released higher at 8.3% than forecasts of 8.1%. The investing community believed that the inflation mess has started responding to rising interest rates by the Federal Reserve (Fed) and sooner a series of decline in price pressures will facilitate the fed to shift to a ‘neutral’ stance.

However, an above-expectations release of the US inflation has cleared that the road to neutral policy is too far from over. And, expectations of a full percent rate hike are trending now.

In today’s session, the release of the US Retail Sales will be of utmost importance. The forecasts for economic data are not revealing any improvement in retail demand. This may be a result of a decline in the confidence of consumers in the economy.

The gold prices have witnessed a steep fall after displaying a textbook kind of test and drop of a consolidation breakdown. The consolidation formed in a range of $1,697.12-1,709.62 on an hourly scale. The yellow metal is trading below the 20-period Exponential Moving Average (EMA) at $1,698.70, which adds to the downside filters.

Also, the Relative Strength Index (RSI) has established in a bearish range of 20.00-40.00, which indicates more weakness ahead.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1691.92 at the time of writing. Pair opened at 1697.22 and is trading with a change of -0.31 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1725.12, 50 SMA 1740.12, 100 SMA @ 1790.02 and 200 SMA @ 1832.43.

The previous day high was 1707.2 while the previous day low was 1693.76. The daily 38.2% Fib levels comes at 1698.89, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1702.07, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1691.59, 1685.95, 1678.15
• Pivot resistance is noted at 1705.03, 1712.83, 1718.47

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