#XAUUSD @ 3.9553 Gold price has turned sideways around $1,650.00 after a corrective move as yields rebound. (Pivot Orderbook analysis)

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• Gold price has turned sideways around $1,650.00 after a corrective move as yields rebound.
• Weaker PMI data weighed pressure on the DXY.
• The release of the GDP data will be a major trigger this week.

The pair currently trades last at 3.9553.

The previous day high was 1658.24 while the previous day low was 1617.35. The daily 38.2% Fib levels comes at 1642.62, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1632.97, expected to provide resistance.

Gold price (XAU/USD) is displaying back-and-forth moves around $1,650.00 in the early Asian session. The precious metal is following the footprints of the US dollar index (DXY) and is performing lackluster. The DXY is oscillating around 112.00 after dropping from 112.50 on Monday. The release of the downbeat US S&P PMI data terminated DXY’s attempts of shifting into a positive trajectory.

The Manufacturing PMI landed lower at 49.9 vs. the projections of 51.2. Also, the Services PMI reported a weak performance as dropped to 46.6 against the expectations of 49.2. A vulnerable PMI data restricted the upside in the DXY.

The gold prices were underperforming despite the upbeat market mood. The catalyst that weighed pressure on the gold prices was the sheer recovery in the returns from US government bonds. The 10-year US Treasury yields recovered sharply after dropping to near 4.15% and settled Monday with gains of 0.82% at 4.25%.

Going forward, the release of the US Gross Domestic Product (GDP) data will be keenly watched. The annualized GDP is expected to improve significantly to 2.4% vs. a decline of 0.6% reported earlier. A firmer increment in the US growth rate could bring volatility in gold prices.

On an hourly scale, gold prices have dropped after facing barricades of around $1,670.00. The precious metal has declined to near the horizontal support placed from Thursday’s high at $1,645.67. The yellow metal is hovering around the 200-period Exponential Moving Average (EMA) at $1,650.46.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates the unavailability of a potential trigger for a decisive move.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1650.8 at the time of writing. Pair opened at 1657.35 and is trading with a change of -0.4 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1665.97, 50 SMA 1696.19, 100 SMA @ 1739.67 and 200 SMA @ 1814.23.

The previous day high was 1658.24 while the previous day low was 1617.35. The daily 38.2% Fib levels comes at 1642.62, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1632.97, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1630.39, 1603.42, 1589.5
• Pivot resistance is noted at 1671.28, 1685.2, 1712.17

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