Gold price is oscillating in a $1,673.96-1,681.95 range ahead of US mid-term elections. (Pivot Orderbook analysis)

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• Gold price is oscillating in a $1,673.96-1,681.95 range ahead of US mid-term elections.
• Overall positive sentiment is continuously providing support to the gold bulls.
• The returns on US government bonds are still solid despite rising odds of a slowdown in Fed’s rate hike pace.

The pair currently trades last at 1674.62.

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) is declining gradually after multiple attempts of breaking above the critical hurdle of $1,680.00. Overall positive sentiment is providing support to the gold prices while anxiety ahead of the US Consumer Price Index (CPI) data has capped the upside.

The precious metal has remained in a narrow range of $1,673.96-1,681.95 on Monday despite back-to-back bearish trading sessions in the US dollar index (DXY)’s counter. The DXY dropped to near the psychological support of 110.00 as the market participants believe that a slowdown in the pace of rate hikes by the Federal Reserve (Fed) is certain.

S&P500 advanced by more than 1% as a gradual incline in critical rates won’t impact corporate earnings to a greater extent. While, the 10-year US Treasury yields have not been impacted and are scaling higher, recorded at 4.22% at the time of writing.

On Tuesday, the major trigger for the assets will be developments on US mid-term elections with voting for all 435 seats in Congress and 35 of the 100 seats in the Senate. As strategists at ANZ Bank note, the US Dollar and equity markets tend to finish the month higher after midterms.

On an hourly scale, the gold prices are forming a Bullish Flag chart pattern that signals a continuation of the upside move after the breakout of the consolidation. The 20-period Exponential Moving Average (EMA) at $1,674.87 has acted as major support for the counter.

Meanwhile, the Relative Strength Index (RSI) (14) has slipped into the 40.00-60.00 range but that doesn’t warrant a reversal in the trend.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1674.62 at the time of writing. Pair opened at 1681.02 and is trading with a change of -0.38 % .

The pair is trading above its 20 Daily moving average @ 1651.98, below 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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