#XAUUSD @ 1663.90 Gold price has gone dead cat as investors have sidelined ahead of the Fed policy. (Pivot Orderbook analysis)

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• Gold price has gone dead cat as investors have sidelined ahead of the Fed policy.
• The DXY is aiming to print a fresh two-week high above 110.30.
• Investors should be prepared for a bumper rate hike by the Fed.

The pair currently trades last at 1663.90.

The previous day high was 1679.49 while the previous day low was 1660.03. The daily 38.2% Fib levels comes at 1667.46, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1672.06, expected to provide resistance.

Gold price (XAU/USD) is displaying a lackluster performance as investors are awaiting the release of the monetary policy by the Federal Reserve (Fed). The precious metal is displaying a volatility contraction of around $1,666.00. While the downside seems favored as the US dollar index is aiming to print a fresh two-week high above 110.30.

The gold prices don’t deserve support a worth penny as investors are now expecting a bigger-than-prior rate hike pattern. The Fed is escalating its interest rates by 75 basis points (bps) over the past two monetary meetings.

Price pressures have not displayed a justified response to the current pace of hiking borrowing rates by the Fed. Therefore, the Fed is expected to think out of the box and tight other quantitative tools along with a third consecutive 75 bps rate hike or so for a full percent rate hike.

An announcement of a mega rate hike will trigger the risk-off market mood. This will strengthen the DXY further and the market participants will ditch the risk-perceived assets.

Gold prices have turned sideways after delivering a downside break of the Ascending Triangle whose upward-sloping trendline is placed from the previous week’s low at $1,654.17 while the horizontal resistance is plotted from Friday’s high at $1,680.39.

The 20-period Exponential Moving Average (EMA) at $1,666.56 is acting as major resistance for the bulls. Also, the 50-EMA at $1,668.90 is declining, which adds to the downside filters.

Meanwhile, the Relative Strength Index (RSI) (14) is on the verge of shifting into the bearish range of 20.00-40.00, which will trigger a fresh downside rally.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1665.03 at the time of writing. Pair opened at 1664.94 and is trading with a change of 0.01 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1709.6, 50 SMA 1734.87, 100 SMA @ 1781.6 and 200 SMA @ 1830.18.

The previous day high was 1679.49 while the previous day low was 1660.03. The daily 38.2% Fib levels comes at 1667.46, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1672.06, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1656.82, 1648.69, 1637.36
• Pivot resistance is noted at 1676.28, 1687.61, 1695.74

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