#XAUUSD @ 1,737.71 Gold price is likely to shift its business below $1,740.00 amid the risk-off market mood. (Pivot Orderbook analysis)

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• Gold price is likely to shift its business below $1,740.00 amid the risk-off market mood.
• The US Treasury yields have rebounded despite less-hawkish commentary from Fed’s Mester.
• Fed’s Mester has supported the view of a slowdown in the rate hike pace ahead.

The pair currently trades last at 1737.71.

The previous day high was 1767.77 while the previous day low was 1747.6. The daily 38.2% Fib levels comes at 1755.3, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1760.07, expected to provide resistance.

Gold price (XAUUSD) is oscillating below the critical support of $1,740.00 in the early Asian session. The precious metal is declining gradually amid a global correction in risk-perceived assets. Weaker economic projections due to a significant fall in consumer spending have raised concerns. S&P500 dropped on Monday amid anxiety ahead of the release of the US Durable Goods orders data.

The US dollar index (DXY) has reached near the round-level resistance of 108.00 as investors turned risk-averse due to the absence of a key trigger for decisive action. Meanwhile, the 10-year US Treasury yields have rebounded to 3.83% despite a less-hawkish commentary from Cleveland Federal Reserve (Fed) Bank President Loretta Mester. Fed policymaker is of the view that it makes sense to slow down the pace of rate hikes a bit in an interview with CNBC.

He further added that “We have had some good news on the inflation front, but need more and sustained good news”. However, he doesn’t see any pause in the rate hike cycle yet.

Going forward, the show-stopper event this week will be the US Durable Goods Orders data. The economic catalyst is seen stable at 0.4%.

On a four-hour scale, the gold price has dropped below the 23.6% Fibonacci retracement (placed from November 3 low at $1,616.39 to November 15 high at $1,786.55) at $1,746.67. The asset has dropped below the 20-and 50-period Exponential Moving Averages (EMAs) at $1,751.40 and $1,746.67 respectively, which adds to the downside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which indicates more weakness ahead.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1738.23 at the time of writing. Pair opened at 1748.73 and is trading with a change of -0.6 % .

The pair is trading above its 20 Daily moving average @ 1697.62, above its 50 Daily moving average @ 1681.32 , above its 100 Daily moving average @ 1712.59 and below its 200 Daily moving average @ 1802.07

The previous day high was 1767.77 while the previous day low was 1747.6. The daily 38.2% Fib levels comes at 1755.3, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1760.07, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1741.63, 1734.53, 1721.46
• Pivot resistance is noted at 1761.8, 1774.87, 1781.97

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