Gold price is marginally from the 200-EMA as Fed may slow down the current pace of rate hikes. (Pivot Orderbook analysis)

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• Gold price is marginally from the 200-EMA as Fed may slow down the current pace of rate hikes.
• The 10-year US Treasury yields have witnessed a bloodbath as bets over 75 bps rate hike have plummeted.
• A sheer decline in consumer spending is responsible for lower-than-projected US CPI data.

The pair currently trades last at 1754.36.

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 (XAUUSD) has witnessed a juggernaut rally after a sheer decline in US inflation figures on Thursday. The precious metal gained around 3% from Wednesday’s closing price and is now expected to recapture a 10-week high at $1,765.58 ahead.

Meanwhile, the US dollar index (DXY) nose-dived to 107.80 as a bumper decline in the US Consumer Price Index (CPI) has accelerated the odds for a less-hawkish commentary from Federal Reserve (Fed) policymakers for December monetary policy meeting. The 10-year US Treasury yields have witnessed a bloodbath and have dropped to 3.8% as chances for a fifth consecutive 75 basis point (bps) rate hike have plummeted below 15%, as per the CME FedWatch tool.

Thanks to the sheer decline in consumer spending in the third quarter of CY2022 that the headline CPI dropped to 7.7% and core CPI declined to 6.3%. Now, chatters over increasing peak for the terminal rate by the Fed may pause for a while and Fed chair Jerome Powell will also discuss supporting the economic prospects too to safeguard the economy from a recession situation.

The market participants should be aware of the fact that the US markets will remain closed on Friday on account of Veterans Day.

On the daily scale, the gold price is marginally far from kissing the 200-period Exponential Moving Average (EMA) at $1,758.00 for the first time in the past five months. The horizontal resistance placed from August 10 high at $1,807.93 will act as major hurdle ahead.

The Relative Strength Index (RSI) (14) has overstepped 60.00 for the first time in seven months, showing no signs of divergence and overbought.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1754.36 at the time of writing. Pair opened at 1704.58 and is trading with a change of 2.92 % .

The pair is trading above its 20 Daily moving average @ 1656.1, 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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