#XAUUSD @ 1664.54 Gold price is advancing towards $1,680.00 as US ISM Manufacturing data carries subdued expectations. (Pivot Orderbook analysis)

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• Gold price is advancing towards $1,680.00 as US ISM Manufacturing data carries subdued expectations.
• A decline in US ISM New Orders Index data indicates sluggish demand ahead.
• Subdued forward demand could be the outcome of lower households’ purchasing power.

The pair currently trades last at 1664.54.

The previous day high was 1675.49 while the previous day low was 1659.31. The daily 38.2% Fib levels comes at 1665.49, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1669.31, expected to provide resistance.

Gold price (XAU/USD) has given an upside break of the minor consolidation, in early Asia, formed in a $1,660.20-1,663.32. The precious metal is marching towards the critical hurdle of $1,680.00 as the market participants are expecting a decline in the US ISM Manufacturing PMI data, which will release on Monday.

As per the preliminary estimates, the US ISM Manufacturing data will release at 52.3 vs. the former release of 52.8. Accelerating interest rates by the Federal Reserve (Fed) to bring price stability to the economy has forced the corporate to withdraw their expansion and investment plans. This is resulting in a decline in manufacturing activities in the US economy.

What is more haunting for the US dollar index (DXY) is a significant decline in the consensus for ISM Manufacturing New Orders Index data. The economic data is seen at 49.6 vs. the prior release of 51.3. The economic indicator determines future demand by firms to cater to retail demand. A decline in New Orders Index data indicates sluggish demand ahead, which could be the result of a vigorous decline in the purchasing power of households due to mounting price pressures.

Gold prices have entered the prior balanced area, which is placed in a range of $1,653.30-1,688.43 on an hourly scale. The balanced area indicates the highest auction region where most of the trading activity took place.

A bull cross, represented by the 20-and 50-period Exponential Moving Averages (EMAs) at $1,635.03 adds to the upside filters.

While the Relative Strength Index (RSI) (14) will display a bullish momentum if it will overstep 60.00 decisively.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1663.74 at the time of writing. Pair opened at 1660.52 and is trading with a change of 0.19 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1679.23, 50 SMA 1724.96, 100 SMA @ 1765.61 and 200 SMA @ 1824.61.

The previous day high was 1675.49 while the previous day low was 1659.31. The daily 38.2% Fib levels comes at 1665.49, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1669.31, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1654.72, 1648.93, 1638.54
• Pivot resistance is noted at 1670.9, 1681.29, 1687.08

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