#XAUUSD @ 1628.35 Gold accelerates its decline and hits fresh three-week lows below $1,630. (Pivot Orderbook analysis)

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• Gold accelerates its decline and hits fresh three-week lows below $1,630.
• The USD rallies on Fed tightening hopes and higher US yields.
• XAU/USD focusing on $1.614 or lower – Credit Suisse.

The pair currently trades last at 1628.35.

The previous day high was 1660.94 while the previous day low was 1645.93. The daily 38.2% Fib levels comes at 1655.21, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1651.66, expected to provide resistance.

Gold futures accelerated their downtrend on Wednesday to reach fresh three-week lows right below $1,630. The yellow metal dives nearly 1.5% so far today on the back of a strong USD recovery as risk appetite waned.

After the moderate decline of the previous two days, the dollar is going through a solid recovery on Wednesday. The USD has bounced back amid a sourer market mood and the rebound on US Treasury bond yields. The benchmark 10-year bond yield has jumped to 4.12%, its highest level since the 2007 crisis

Beyond that, the investors have shifted their focus to the Federal Reserve’s monetary policy meeting due on November 1 and 2. With the market anticipating another 75 basis point hike, the aggressive tightening cycle of the US central bank is acting as a tailwind for the USD.

The USD has regained most of the ground lost over the previous two days. The US Dollar Index bounced up from levels right below 112.00 and has rallied beyond 1% on the day, returning to the 113.00 area at the time of writing.

Analysts at Credit Suisse point out that gold futures have activated a double top, which anticipates further declines: “Gold below $1,691/76 has reinforced its existing large ‘double top’. Hence, with a top in place, we expect gold to come under renewed pressure. We note that the next support is seen at $1,614, then $1,560, and eventually $1,451/40.”

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1629.75 at the time of writing. Pair opened at 1652.2 and is trading with a change of -1.36 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1669.72, 50 SMA 1705.58, 100 SMA @ 1746.18 and 200 SMA @ 1817.02.

The previous day high was 1660.94 while the previous day low was 1645.93. The daily 38.2% Fib levels comes at 1655.21, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1651.66, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1645.11, 1638.01, 1630.1
• Pivot resistance is noted at 1660.12, 1668.03, 1675.13

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