#XAUUSD @ 1,734.90 Gold price has dropped to near three-day’s low around $1,730.00 ahead of FOMC minutes. (Pivot Orderbook analysis)

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• Gold price has dropped to near three-day’s low around $1,730.00 ahead of FOMC minutes.
• A 75 bps rate hike by the RBNZ has also weakened gold prices.
• The precious metal has sensed selling pressure after testing the 23.6% Fibo retracement at $1,746.67.

The pair currently trades last at 1734.90.

The previous day high was 1749.81 while the previous day low was 1737.1. The daily 38.2% Fib levels comes at 1744.95, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1741.96, expected to provide resistance.

Gold price (XAU/USD) has declined sharply to near $1,730.00 in the Tokyo session as the risk impulse is displaying mixed responses ahead of the release of the Federal Open Market Committee (FOMC) minutes. The precious metal is witnessing sheer volatility as FOMC minutes will also provide clues about the interest rate guidance. However, the detailed explanation behind hiking interest rates by 75 basis points (bps) for the fourth time consecutively will remain crucial.

Meanwhile, the US dollar index (DXY) has displayed signs of recovery after dropping to near the round-level support of 107.00.

Outside the West, the Reserve Bank of New Zealand (RBNZ) has gone for a bigger rate hike amid its battle against mounting inflation. RBNZ Governor Adrian Orr ditched the 50 bps rate hike regime and went for a rate hike of 75 bps, in line with the expectations.

The commentary from RBNZ Governor indicated that policymakers were also considering a full percent rate hike. Although the Federal Reserve (Fed) is expected to slow down its rate hike pace, other central banks are still bidding for bigger hikes as inflation is still a reason for worry.

On a four-hour scale, the gold price has sensed selling pressure after testing 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. Also, the 20-period Exponential Moving Average (EMA) at around $1,747.00 has acted as a major barricade for the counter.

Meanwhile, the Relative Strength Index (RSI) (14) is hovering around the bearish range of 20.00-40.00. A slippage inside the bearish range will trigger a bearish momentum.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1734.22 at the time of writing. Pair opened at 1740.43 and is trading with a change of -0.36 % .

The pair is trading above its 20 Daily moving average @ 1706.46, above its 50 Daily moving average @ 1682.38 , above its 100 Daily moving average @ 1711.67 and below its 200 Daily moving average @ 1800.81

The previous day high was 1749.81 while the previous day low was 1737.1. The daily 38.2% Fib levels comes at 1744.95, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1741.96, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1735.08, 1729.74, 1722.37
• Pivot resistance is noted at 1747.79, 1755.16, 1760.5

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