#XAUUSD @ 3.9520 Gold price is oscillating around $1,650.00 amid a quiet market mood. (Pivot Orderbook analysis)

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• Gold price is oscillating around $1,650.00 amid a quiet market mood.
• The odds of a fourth consecutive 75 bps rate hike by the Fed are skyrocketing.
• Fed’s extreme policy tightening measures are approaching a recession situation.

The pair currently trades last at 3.9520.

The previous day high was 1670.76 while the previous day low was 1643.99. The daily 38.2% Fib levels comes at 1654.22, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1660.53, expected to provide resistance.

Gold price (XAU/USD) has continued to auction sideways following the bewilderness in the US dollar index (DXY). The precious metal is displaying topsy-turvy moves in a $1,647.50-1,655.00 range in the Tokyo session. S&P500 futures have witnessed a mild correction, however, the risk-on profile is still solid and could trim the appeal for safe-haven assets ahead.

The US dollar index (DXY) is continuously oscillating below the critical hurdle of 112.00. The DXY is in a make or a break situation and minor volatility could drag it to test Monday’s low of 111.50. Meanwhile, the 10-year US Treasury yields are hovering around 4.21%.

The odds of a fourth consecutive 75 basis point (bps) rate hike by the Federal Reserve (Fed) are skyrocketing. A Reuters poll on Fed’s interest rate projections claims that a 75 bps rate hike is a done deal. As price pressures have not reacted in line with the projections, policy tightening is the only measure to contain the inflation mess.

Apart from that, recession fears in the US economy are gaining a lot of traction. US Treasury Chief Janet Yellen cited “Cannot rule out risk” of a recession, reported MSNBC news.

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 1649.04 at the time of writing. Pair opened at 1649.74 and is trading with a change of -0.04 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1667.34, 50 SMA 1693.59, 100 SMA @ 1737.75 and 200 SMA @ 1813.4.

The previous day high was 1670.76 while the previous day low was 1643.99. The daily 38.2% Fib levels comes at 1654.22, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1660.53, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1638.9, 1628.06, 1612.13
• Pivot resistance is noted at 1665.67, 1681.6, 1692.44

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