Gold is down more than 1% on a daily basis on Wednesday. (Pivot Orderbook analysis)

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• Gold is down more than 1% on a daily basis on Wednesday.
• 10-year US Treasury bond yield surges higher in the American session.
• Hawkish Fed bets provide a boost to the greenback after latest data releases.

The pair currently trades last at 1705.45.

The previous day high was 1729.58 while the previous day low was 1695.18. The daily 38.2% Fib levels comes at 1716.44, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1708.32, expected to provide resistance.

Gold came under renewed bearish pressure and dropped toward $1,700 during the American trading hours on Wednesday. As of writing, XAU/USD was down 1.25% on the day at $1,705.

The impressive rebound witnessed in US Treasury bond yields amid hawkish Fed bets weighs heavily on the precious metal mid-week. Following the sharp decline seen earlier in the week, the benchmark 10-year US Treasury bond yield is up more than 4% on a daily basis at 3.78%. According to the CME Group FedWatch Tool, markets are pricing in a 68% probability of a 75 basis points rate hike in November.

The data from the US showed on Wednesday that private sector employment rose by 208,000 in September, higher than the market expectation of 200,000.

Additionally, the ISM Services PMI came in at 56.7, showing that the business activity in the service sector continued to expand at a healthy pace in September. More importantly, the Employment Index of the PMI survey recovered to 53 from 50.2, reviving expectations for another strong Nonfarm Payrolls report on Friday. The US Dollar Index is up 1.33% on the day, reflecting the positive impact of Wednesday’s data on the dollar’s valuation.

There won’t be any other high-tier macroeconomic data releases later in the day and the US yields’ movements are likely to continue to impact the inversely-correlated XAU/USD’s action.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1705.45 at the time of writing. Pair opened at 1726.18 and is trading with a change of -1.2 % .

The pair is trading above its 20 Daily moving average @ 1679.83, below its 50 Daily moving average @ 1724.74 , below its 100 Daily moving average @ 1763.48 and below its 200 Daily moving average @ 1823.63

The previous day high was 1729.58 while the previous day low was 1695.18. The daily 38.2% Fib levels comes at 1716.44, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1708.32, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1704.38, 1682.58, 1669.98
• Pivot resistance is noted at 1738.78, 1751.38, 1773.18

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