#XAUUSD @ 1674.91 Gold squeezes higher to reach $1,678 after Fed’s minutes. (Pivot Orderbook analysis)

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• Gold squeezes higher to reach $1,678 after Fed’s minutes.
• The US dollar loses ground as the Fed hints to moderate the hiking pace.

The pair currently trades last at 1674.91.

The previous day high was 1684.05 while the previous day low was 1661.01. The daily 38.2% Fib levels comes at 1669.81, expected to provide support. Similarly, the daily 61.8% fib level is at 1675.25, expected to provide resistance.

Gold futures spiked up to session highs at $1,677, with the US dollar turning lower as the minutes of September’s Fed meeting have been considered as tilted to the dovish side.

The yellow metal, however, has given away gains shortly afterward, with the US dollar retracing lost ground. XAU/USD is practically back at pre-Minutes levels at the time of writing.

The Federal Reserve has shown its surprise at the pace of inflation and has confirmed that the officials maintain their commitment to continue hiking interest rates until the problem shows signs of resolving.

The market, however, has analyzed one comment as a potential sign of moderation on the monetary tightening cycle: “Several participants noted that (…) it would be important to calibrate the pace of further policy tightening with the aim of mitigating the risk of significant adverse effects on the economic outlook.”

These comments have been taken as a hint that the bank might be considering smaller rate hikes in the next months. This has had a negative impact on the USD, which sent gold futures higher.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1673.99 at the time of writing. Pair opened at 1666.28 and is trading with a change of 0.46 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1674.26, 50 SMA 1718.15, 100 SMA @ 1755.82 and 200 SMA @ 1820.64.

The previous day high was 1684.05 while the previous day low was 1661.01. The daily 38.2% Fib levels comes at 1669.81, expected to provide support. Similarly, the daily 61.8% fib level is at 1675.25, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1656.84, 1647.41, 1633.8
• Pivot resistance is noted at 1679.88, 1693.49, 1702.92

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