Gold price advances following the release of a weak US CPI report. (Pivot Orderbook analysis)

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• Gold price advances following the release of a weak US CPI report.
• The US core Consumer Price Index (CPI) for October creeps lower, suggesting the Fed might slow the pace of rate hikes.
• Unemployment claims in the US rose, flashing signs of easing.

The pair currently trades last at 1740.15.

The previous day high was 1722.4 while the previous day low was 1702.23. The daily 38.2% Fib levels comes at 1709.93, expected to provide support. Similarly, the daily 61.8% fib level is at 1714.7, expected to provide support.

Gold price rallied after a report on inflation in the United States showed that prices are easing, opening the door for less aggressive action by the Federal Reserve at December’s meeting. That said, investors’ risk appetite improved as US equity futures jumped while US Treasury yields were getting smashed. At the time of writing, the XAUUSD is trading at around $1739, above its opening price by almost 2%.

On Thursday, the US Department of Labor reported the Consumer Price Index (CPI) for October rose 0.4% MoM, less than’0.6% estimated, while the annual basis reading was 7.7%, below the 7.9% foreseen. Meanwhile, the core CPI, which Federal Reserve officials closely follow, jumped 0.3% MoM, less than the 0.5% expected by analysts, and the year-over-year figure was 6.3%, lower than the 6.5% estimates.

At the same time, US Initial Jobless Claims for the week ending on November 5 rose by 225K, above estimates of 220K, flashing signs that the labor market is easing, while Continuing Claims increased to 1493K from 1487K in the previous reading. During the last week’s employment data, the US economy added 261K jobs exceeding estimates, but the unemployment rate edged toward 3.7%.

Following the release, the US Treasury bond yields are plunging, with the US 10-year benchmark note rate at 3.912%, down 18 bps, a headwind for the US Dollar. The US Dollar Index, a gauge of the buck’s value against a basket of six peers, is down 1.47%, at 108.819.

At the time of typing, the Philadelphia Fed President Patrick Harker is crossing newswires, and he said that the restrictive Fed Policy stance is seen above 4% and added that rate hikes could pause when the Federal Funds rate (FFR) hits 4.5%. Harker said that monetary policy lags “about a year or so.”

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1740.15 at the time of writing. Pair opened at 1704.58 and is trading with a change of 2.09 % .

The pair is trading above its 20 Daily moving average @ 1656.13, above its 50 Daily moving average @ 1673.51 , above its 100 Daily moving average @ 1716.29 and below its 200 Daily moving average @ 1803.93

The previous day high was 1722.4 while the previous day low was 1702.23. The daily 38.2% Fib levels comes at 1709.93, expected to provide support. Similarly, the daily 61.8% fib level is at 1714.7, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1697.07, 1689.57, 1676.9
• Pivot resistance is noted at 1717.24, 1729.91, 1737.41

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