#XAUUSD @ 1669.16 Gold bounces up from $1,642 lows and returns to the $1,670 area. (Pivot Orderbook analysis)

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• Gold bounces up from $1,642 lows and returns to the $1,670 area.
• The US dollar pulls back after the post-CPI rally.
• XAU/USD remains weak, capped below $1.680.

The pair currently trades last at 1669.16.

The previous day high was 1678.39 while the previous day low was 1661.42. The daily 38.2% Fib levels comes at 1671.91, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1667.9, expected to provide support.

Gold futures are retracing previous losses during Thursday’s US trading session, favored by a broad-based USD pullback. The yellow metal has bottomed at a two-week low of $1,642 before returning to 4 1,670 at the time of writing.

The greenback is losing ground after the bullish reaction triggered by the release of US CPI data. Consumer prices increased at a 0.4% pace in September, beating expectations of a 0.2% rise, which boosted hopes of a 100 basis point rate hike by the Federal Reserve in November.

Federal Fund Futures priced in a 13% chance that the Federal Reserve could accelerate its hiking pace at the next month’s meeting. The Dollar Index (DXY) rushed higher, to hit a session high right below 114.00, nearing the recent 24-year high of 114.70.

The US dollar seems to have lost steam, as the market confronts the data with the slight dovish tilt observed in September’s FOMC minutes released on Wednesday.

The precious metal has reversed losses on Thursday, yet, the near-term bias remains negative, with the pair capped below October 11 high at $1,685. A confirmation above that level might increase bullish momentum, to advance towards $1,730 (September 12 high), ahead of early August highs right above $1,800.

On the downside, initial support lies at $1,650/60 (mid-September lows), and below here, October 3 low at $1,612 and then probably April 2020 low at $1,575.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1671.52 at the time of writing. Pair opened at 1673.26 and is trading with a change of -0.1 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1673.06, 50 SMA 1716.31, 100 SMA @ 1754.02 and 200 SMA @ 1819.93.

The previous day high was 1678.39 while the previous day low was 1661.42. The daily 38.2% Fib levels comes at 1671.91, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1667.9, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1663.66, 1654.05, 1646.69
• Pivot resistance is noted at 1680.63, 1687.99, 1697.6

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