#XAUUSD @ 3.9504 Gold price has recovered firmly to near $1,650.00 amid a subdued DXY’s performance. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• Gold price has recovered firmly to near $1,650.00 amid a subdued DXY’s performance.
• The risk-on profile is attempting to regain traction as yields have slipped further below 4.10%.
• This week, the US GDP will be a key event for making informed decisions.

The pair currently trades last at 3.9504.

The previous day high was 1662.42 while the previous day low was 1638.35. The daily 38.2% Fib levels comes at 1653.23, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1647.54, expected to provide resistance.

Gold price (XAU/USD) has extended its gains to near $1,657.50 after a firmer recovery from the critical support of $1,650.00. The precious metal is expected to remain on the tenterhooks as investors are awaiting the release of the US Gross Domestic Product (GDP) data, which will release on Thursday.

The risk profile is displaying mixed responses as the S&P500 futures are attempting a rebound after dropping significantly in Tokyo. Meanwhile, the US dollar index (DXY) has failed to sustain above the round-level resistance of 111.00, which indicates a decline in safe-haven’s appeal.

Alpha generated by US Treasuries is looking for more downside as investors have ditched the risk-aversion theme. The 10-year US Treasury yields have dropped below 4.10% and the current downside momentum could weigh more pressure ahead.

On Thursday, the release of the US GDP data is expected to bring sheer volatility in gold prices. As per the preliminary estimates, the US growth rate for the third quarter of CY 2022 is 2.4% against a negative rate of 0.6% reported earlier.

On an hourly scale, gold prices have bounced back sharply after dropping below the horizontal support placed from Thursday’s high at $1,640.55. The downward-sloping trendline placed from October 13 high at $1,682.53 will act as major resistance for the gold prices ahead.

The precious metal is expected to display a sideways movement ahead as the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range. The 20-period Exponential Moving Average (EMA) near $1,651.50 is acting as major support for the counter.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1655.86 at the time of writing. Pair opened at 1653.2 and is trading with a change of 0.16 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1668.54, 50 SMA 1691.14, 100 SMA @ 1735.76 and 200 SMA @ 1812.57.

The previous day high was 1662.42 while the previous day low was 1638.35. The daily 38.2% Fib levels comes at 1653.23, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1647.54, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1640.23, 1627.25, 1616.16
• Pivot resistance is noted at 1664.3, 1675.39, 1688.37

[/s2If]
Join Our Telegram Group