#XAUUSD @ 4.0828 A combination of factors prompts some selling around gold on Thursday. (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)]

• A combination of factors prompts some selling around gold on Thursday.
• Rising US bond yields revive the USD demand and exert some pressure.
• Bets for a less hawkish Fed offer support ahead of the US Q3 GDP report.

The pair currently trades last at 4.0828.

The previous day high was 1674.96 while the previous day low was 1649.86. The daily 38.2% Fib levels comes at 1665.37, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1659.45, expected to provide resistance.

Gold struggles to gain any meaningful traction on Thursday and seesaws between tepid gains/minor losses through the first half of the European session. The XAU/USD remains below a nearly two-week high set the previous day and is currently trading around the $1,663-$1,662 area, nearly unchanged for the day.

The US dollar regains some positive traction and stages a goodish rebound from its lowest level since September 20, which, in turn, acts as a headwind for the dollar-denominated gold. Apart from this, a positive tone around the US equity futures further contributes to capping the upside for the safe-haven precious metal.

That said, expectations that the Fed may slow the pace of its policy tightening helps limit the downside for the non-yielding gold. The incoming US macro data pointed to signs of a slowdown in the world’s largest economy and forced investors to trim their bets for more aggressive rate hikes by the US central bank.

Traders also prefer to move to the sidelines ahead of Thursday’s key event/data risks. The European Central Bank is scheduled to announce its policy decision and is widely expected to hike interest rates by 75 bps. Apart from this, the Advance US Q3 GDP report should infuse some volatility and provide a fresh impetus to gold.

From a technical perspective, the recent recovery from the vicinity of the YTD low stalls near the $1,675 intermediate hurdle. This is followed by the $1,682 supply zone, which if cleared decisively will set the stage for an extension of the recent positive move witnessed over the past week or so, from the vicinity of the YTD low.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1661.94 at the time of writing. Pair opened at 1664.66 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 @ 1668.78, 50 SMA 1689.2, 100 SMA @ 1733.87 and 200 SMA @ 1811.82.

The previous day high was 1674.96 while the previous day low was 1649.86. The daily 38.2% Fib levels comes at 1665.37, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1659.45, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1651.36, 1638.06, 1626.26
• Pivot resistance is noted at 1676.46, 1688.26, 1701.56

[/s2If]
Join Our Telegram Group