#XAUUSD @ 1650.14 Gold price has picked bids around the $1,650.00 support as DXY sees more pressure. (Pivot Orderbook analysis)

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• Gold price has picked bids around the $1,650.00 support as DXY sees more pressure.
• Strong yields brought sheer weakness in the gold prices after a pullback.
• Upbeat US NFP is delighting the Fed to hike interest rates unhesitatingly.

The pair currently trades last at 1650.14.

The previous day high was 1671.81 while the previous day low was 1640.23. The daily 38.2% Fib levels comes at 1652.29, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1659.75, expected to provide resistance.

Gold price (XAU/USD) is witnessing some buying interest around $1,650.00 despite soaring bets for bigger rate hikes by the Federal Reserve (Fed). On Monday, the precious metal eased the majority of the gains despite mayhem in the US dollar index (DXY). The DXY dropped to near the round-level cushion of 112.00 as the risk-on impulse gained significant traction. S&P500 advanced vertically and recovered Friday’s losses.

Soaring yields backed by advancing certainty of policy tightening by the Fed resulted in a steep fall in gold prices. The 10-year US Treasury yields sustain above 4%. A divergence in price action from the DXY and yields kept the gold prices in the bush of bears and risk-perceived currencies in the bullish trajectory.

Higher-than-projected Consumer Price Index (CPI), released last week, and September’s better-than-expected Nonfarm Payrolls (NFP) data are compelling the Fed to sound hawkish and continue the current pace of hiking interest rates.

Meanwhile, commentary from Societe Generale carries a bearish view on gold for a tad longer period. “In the past, we have observed that gold seems to correlate well with three factors – US real rates, the dollar, and ETF flows (regression r-squared of almost 95%). However, the price of gold has remained quite elevated compared to the theoretical value yielded by our models.”

“If real rates remain elevated for the foreseeable future, one of the assets that could come under pressure is gold.”

On an hourly scale, the gold prices have picked significant selling pressure in several attempts of surpassing the highest auction area placed in a range of $1,661.70-1,684.50. The precious metal has dropped below the 20-period Exponential Moving Average (EMA) at $1,654.43.

The Relative Strength Index (RSI) (14) is hovering around 40.00, and a drop below the same will trigger the downside momentum.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1650.1 at the time of writing. Pair opened at 1645.08 and is trading with a change of 0.31 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1671.65, 50 SMA 1711.2, 100 SMA @ 1750.09 and 200 SMA @ 1818.49.

The previous day high was 1671.81 while the previous day low was 1640.23. The daily 38.2% Fib levels comes at 1652.29, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1659.75, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1632.94, 1620.79, 1601.36
• Pivot resistance is noted at 1664.52, 1683.95, 1696.1

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