#XAUUSD @ 1,741.28 Gold price has attempted to resurface after dropping to near $1,732.60 as the risk-off impulse has started fading. (Pivot Orderbook analysis)

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• Gold price has attempted to resurface after dropping to near $1,732.60 as the risk-off impulse has started fading.
• The US Durable Goods Orders are expected to continue their pace of improvement at 0.4%.
• Higher demand for US Durable Goods could dent Fed’s strategic plans to scale down soaring inflation.

The pair currently trades last at 1741.28.

The previous day high was 1753.06 while the previous day low was 1732.61. The daily 38.2% Fib levels comes at 1740.42, expected to provide support. Similarly, the daily 61.8% fib level is at 1745.25, expected to provide resistance.

Gold price (XAU/USD) sensed a decent buying interest after dropping to near $1,732.60 in the late New York session. The precious metal has extended its recovery and is aiming to cross the immediate hurdle of $1,740.00 decisively. Traction is returning in the gold price as the risk-off impulse is losing its strength.

S&P500 futures have displayed a marginal recovery after easing on Monday. Meanwhile, the US dollar index (DXY) is oscillating around 107.70 after a correction from 108.00. The 10-year US Treasury yields are still holding their recovery to near 3.83% despite less confidence in the continuation of the current rate hike pace by the Federal Reserve (Fed).

For a decisive movement, investors are awaiting the release of the US Durable Goods Orders. As per the consensus, the economic catalyst will continue its pace of improvement at 0.4% as reported earlier. This could dent the strategic plans of fighting against inflation drawn by the Federal Reserve (Fed) as a stable demand for durable goods in times of accelerating interest rates is not a sign of declining consumer spending. It could compel the Fed to continue hiking interest rates by 75 basis points (bps).

On a four-hour scale, the gold price is expected to attempt a mean reversion to 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 1740.86 at the time of writing. Pair opened at 1739.21 and is trading with a change of 0.09 % .

The pair is trading above its 20 Daily moving average @ 1702.09, above its 50 Daily moving average @ 1681.62 , above its 100 Daily moving average @ 1711.91 and below its 200 Daily moving average @ 1801.46

The previous day high was 1753.06 while the previous day low was 1732.61. The daily 38.2% Fib levels comes at 1740.42, expected to provide support. Similarly, the daily 61.8% fib level is at 1745.25, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1730.19, 1721.18, 1709.74
• Pivot resistance is noted at 1750.64, 1762.08, 1771.09

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