#XAUUSD @ 3.9577 Gold price stays defensive after reversing from 21-DMA., @nehcap view: Further weakness expected (Pivot Orderbook analysis)

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• Gold price stays defensive after reversing from 21-DMA.
• DXY picks up bids to reverse early Asian session losses amid mixed concerns.
• Yields stay downbeat in absence of Fedspeak, pre-data anxiety.
• XAU/USD may remain sidelined ahead of US CB Consumer Confidence, Q3 GDP.

The pair currently trades last at 3.9577.

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) remains directionless while bouncing off intraday low to $1,650 heading into Tuesday’s European session.

That said, the yellow metal lured buyers earlier in the day amid a softer US dollar but the greenback’s latest rebound appears to have weighed on the quote of late. It should be noted that the negative concerns surrounding China, one of the world’s biggest gold consumers, also challenge the precious metal prices of late.

US Dollar Index (DXY) picks up bids to regain the 112.00 threshold while paring the first weekly loss in three amid an absence of Fedspeak. It should be noted that the hawkish Fedspeak and downbeat US PMIs also underpin the DXY’s safe-haven demand.

China’s efforts to defend the struggling economy and global pessimism over Xi Jinping’s third term, not to forget Hang Seng’s slump to a 13-year low, exert downside pressure on the market sentiment and the XAU/USD prices.

Amid these plays, the US 10-year Treasury yields remain pressured around 4.21%, down two basis points (bps) while the US stock futures and stocks in the Asia-Pacific region are mildly bid.

Moving on, second-tier US Housing data and Consumer Confidence figures may entertain gold traders ahead of Thursday’s US Gross Domestic Product for the third quarter (Q3).

Gold retreats inside a two-week-old bearish megaphone. That said, the recent downside RSI and the quote’s pullback from the trend-widening pattern’s resistance line direct it toward the 100-EMA support near $1,645.

However, the metal’s further downside appears elusive as the yearly bottom near $1,614 and the lower line of the stated megaphone, close to $1,608, could challenge the XAU/USD bears afterward. Also acting as a downside filter is the $1,600 threshold, a break of which could direct the prices toward the April 2020 low near $1,572.

Meanwhile, the stated formation’s upper line and the 61.8% Fibonacci retracement of the metal’s upside from September 28 to October 04, around $1,658-60, appear a tough nut to crack for the gold buyers.

Overall, the bullion prices are likely to remain pressured but the south run could be a slower one.

Trend: Further weakness expected

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1649.15 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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