#XAUUSD @ 1627.38 Gold price has resumed its downside journey after the pullback move faded. (Pivot Orderbook analysis)

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• Gold price has resumed its downside journey after the pullback move faded.
• The precious metal failed to extend the rebound move as the risk-off impulse rebounded.
• The 10-year US yields have soared further to 4.23% as a bigger rate hike by the Fed looks certain.

The pair currently trades last at 1627.38.

The previous day high was 1654.5 while the previous day low was 1627.81. The daily 38.2% Fib levels comes at 1638.01, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1644.3, expected to provide resistance.

Gold price (XAU/USD) has witnessed a steep fall after the termination of the pullback move at around $1,646.00. The precious metal has resumed its downside journey and is revisiting the two-year low at $1,614.85. Cat got gold prices tongue as the market impulse turned risk-averse again after S&P500 surrendered their gains in the New York session.

Meanwhile, returns on US government bonds have reached the rooftop as odds for a fourth consecutive 75 basis point (bps) rate hike by the Federal Reserve (Fed) has heated further. The 10-year benchmark US Treasury yields have soared to 4.23%.

Fed Beige Book, released this week, cited that inflationary pressures are here to stay led by rising input prices. This has strengthened the need of tightening monetary policy further. As per the CME FedWtch tool, the probability of a 75 bps rate hike announcement is stable above 95%.

Firmer yields fetched strength for the US dollar index (DXY) after it dropped below 112.20 when market sentiment was bewildered. The DXY has recaptured the critical hurdle of 113.00.

On an hourly scale, the gold prices are declining towards the two-year placed at $1,614.85, recorded on 28 September 2022. The 100-period Exponential Moving Average (EMA) at $1,645.63 acted as a major barricade for the counter.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, and a shift into the bearish range of 20.00-40.00will trigger the downside momentum

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1628.02 at the time of writing. Pair opened at 1629.41 and is trading with a change of -0.09 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1667.5, 50 SMA 1702.32, 100 SMA @ 1744.01 and 200 SMA @ 1816.05.

The previous day high was 1654.5 while the previous day low was 1627.81. The daily 38.2% Fib levels comes at 1638.01, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1644.3, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1619.98, 1610.55, 1593.29
• Pivot resistance is noted at 1646.67, 1663.93, 1673.36

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