Gold price is advancing towards $1,700.00 amid a significant improvement in the risk appetite of investors. (Pivot Orderbook analysis)

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• Gold price is advancing towards $1,700.00 amid a significant improvement in the risk appetite of investors.
• A robust US payroll data failed to support the DXY as a slowdown in the rate hike pace looks certain.
• Broader markets could turn volatile ahead of US CPI data.

The pair currently trades last at 1681.02.

The previous day high was 1682.49 while the previous day low was 1628.8. The daily 38.2% Fib levels comes at 1661.98, expected to provide support. Similarly, the daily 61.8% fib level is at 1649.31, expected to provide support.

Gold price (XAUUSD) snapped 15-day topsy-turvy moves in a single trading session after gaining more than 3.20% on Friday. The precious metal remained the show-stopper after the market started discounting the fact that the Federal Reserve (Fed) will slow down its pace of hiking interest rates as the terminal rate is merely one bigger rate far from the current borrowing rates.

In the early Tokyo session, the asset is holding its prior week’s gains and the current momentum is expected to approach the psychological resistance of $1,700.00 amid a risk-on market mood. S&P500 settled the week on a positive note as a slowdown in the rate hike extent won’t upset the earnings guidance further.

The US dollar index (DXY) plunged below 111.00 despite the robust US Nonfarm Payrolls (NFP) data. The US economy has added 261k in October vs. the projections of 200k. Going forward, investors will shift their focus toward Thursday’s inflation data. The headline Consumer Price Index (CPI) is seen lower at 8.0% vs. the prior release of 8.2%. While, the core CPI may decline marginally to 6.5%, 10 basis points (bps) lower than the former release.

Gold price has witnessed a stellar buying response after testing the demand zone placed in a narrow range of $1,615.70-1,618.64 on a four-hour scale. The precious metal is auctioning above the 200-period Exponential Moving Average (EMA) at $1,664.20, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted to the bullish range of 60.00-80.00, which indicates the upside momentum has been triggered.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1681.02 at the time of writing. Pair opened at 1681.02 and is trading with a change of 0.0 % .

The pair is trading above its 20 Daily moving average @ 1651.98, above its 50 Daily moving average @ 1675.13 , below its 100 Daily moving average @ 1720.45 and below its 200 Daily moving average @ 1805.43

The previous day high was 1682.49 while the previous day low was 1628.8. The daily 38.2% Fib levels comes at 1661.98, expected to provide support. Similarly, the daily 61.8% fib level is at 1649.31, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1645.72, 1610.41, 1592.03
• Pivot resistance is noted at 1699.41, 1717.79, 1753.1

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