#XAUUSD @ 1665.14 Gold prices are declining to recapture their two-year low at $1,654.20 amid soaring hawkish Fed bets. (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 prices are declining to recapture their two-year low at $1,654.20 amid soaring hawkish Fed bets.
• The Fed is expected to deliver a surprise announcement regarding the interest rates.
• Price pressures have not responded effectively to the current pace of hiking interest rates.

The pair currently trades last at 1665.14.

The previous day high was 1680.39 while the previous day low was 1654.17. The daily 38.2% Fib levels comes at 1670.37, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1664.19, expected to provide support.

Gold price (XAU/USD) has witnessed a vertical fall after failing to overstep the critical resistance of $1,680.00 in the Asian session. The precious metal is eyeing more losses as an intraday inventory distribution is indicating the resumption of a downside journey ahead. The yellow metal is expected to find a cushion around a two-year low at $1,654.20.

The gold prices are facing severe pressure from the market participants as the US dollar index (DXY) is gearing up for a fresh rally ahead. As per the consensus, the Federal Reserve (Fed) will announce a third consecutive rate hike by 75 basis points (bps). However, investors should be prepared for an upside surprise as the price pressures have not responded effectively to the current pace of hiking interest rates.

A survey from Financial Times dictates that the interest rates will peak around 4-5% and will remain steady beyond 2023. It further cited that the inflation chaos will take sufficient time to get fixed and a series of slowdowns in the inflationary pressures will only warrant adaptation of a ‘neutral’ approach.

On an hourly scale, gold prices are declining towards potential support at $1,654.20, which is a two-year low, recorded last week. Declining 20-and 50-period Exponential Moving Averages (EMAs) at $1,670.50 and $1,674.74 adds to the downside filters. Also, the Relative Strength Index (RSI) (14) is on the verge of slipping into the bearish range of 20.00-40.00, which will trigger a bearish momentum.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1667.74 at the time of writing. Pair opened at 1674.76 and is trading with a change of -0.42 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1716.79, 50 SMA 1737.26, 100 SMA @ 1785.5 and 200 SMA @ 1831.32.

The previous day high was 1680.39 while the previous day low was 1654.17. The daily 38.2% Fib levels comes at 1670.37, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1664.19, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1659.16, 1643.55, 1632.94
• Pivot resistance is noted at 1685.38, 1695.99, 1711.6

[/s2If]
Join Our Telegram Group