#XAUUSD @ 1661.00 Gold price is likely to print a fresh two-year low as DXY is preparing for a fresh rally. (Pivot Orderbook analysis)

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• Gold price is likely to print a fresh two-year low as DXY is preparing for a fresh rally.
• Ultra-hawkish guidance by the Fed has forced investors to dump gold prices.
• S&P Global PMI is expected to display a mixed performance ahead.

The pair currently trades last at 1661.00.

The previous day high was 1688.11 while the previous day low was 1653.97. The daily 38.2% Fib levels comes at 1675.07, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1667.01, expected to provide resistance.

Gold price (XAU/USD) is resuming its downside journey after a less-confident pullback to nearly $1,664.00 in the Asian session. The precious metal is expected to surrender the critical support of $1,654.00 and the investing community will witness a fresh two-year low. The gold prices have weakened dramatically as the Federal Reserve (Fed) chair Jerome Powell has delivered higher-than-expected hawkish guidance on interest rates to wipe off the add-on inflation beyond the desired rate of 2%.

Meanwhile, the US dollar index (DXY) has printed a fresh two-decade high at 111.78. The DXY is expected to continue its dream run as more rate hikes are on the way till the Fed experiences a series of slow down in price pressures for months. The roadmap for bringing price stability is leaked and the interest rates are seen making top around 4.60%. The latest reading of the interest rate target is extremely higher, which will result in a decline in growth projections and job creation.

Going forward, investors will focus on the S&P Global PMI data, which will release on Friday. The Manufacturing PMI is seen lower at 51.1 vs. the prior release of 51.5. While the Services PMI will improve to 45.0 against the prior print of 43.7.

Gold price is oscillating near the lower edge of the consolidation formed in a wider range of $1,654.00-1,690.50 on an hourly scale. The 50-period Exponential Moving Average (EMA) is mostly overlapping with the asset price, which signals a consolidation ahead.

Also, the Relative Strength Index (RSI) (14) has shifted back into the 40.00-60.00, which seeks further trigger for a decisive move.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1662.18 at the time of writing. Pair opened at 1673.94 and is trading with a change of -0.7 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1705.74, 50 SMA 1733.64, 100 SMA @ 1779.52 and 200 SMA @ 1829.69.

The previous day high was 1688.11 while the previous day low was 1653.97. The daily 38.2% Fib levels comes at 1675.07, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1667.01, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1655.9, 1637.87, 1621.76
• Pivot resistance is noted at 1690.04, 1706.15, 1724.18

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