#XAUUSD @ 1,740.27 Gold price has shifted into an inventory adjustment after a sheer decline amid a downbeat market mood. (Pivot Orderbook analysis)

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• Gold price has shifted into an inventory adjustment after a sheer decline amid a downbeat market mood.
• The USD Index is aiming to smash the 107.00 hurdle amid an improvement in safe-haven’s appeal.
• Fed’s Mester needs more good inflation reports for supporting the rate hike pause scenario.

The pair currently trades last at 1740.27.

The previous day high was 1761.2 while the previous day low was 1746.03. The daily 38.2% Fib levels comes at 1755.41, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1751.82, expected to provide resistance.

Gold price (XAU/USD) has turned sideways in the early Asian session after a perpendicular downfall above the key resistance of $1,760.00. The precious metal is building a cushion of around $1,740.00, at the time of writing. Later, it will be discovered whether the inventory adjustment is an accumulation or a distribution.

The risk profile is still negative, therefore, the odds are favoring the inventory adjustment as a distribution one. The US Dollar Index (DXY) is displaying back-and-forth moves around 106.70 and is aiming to kiss the critical resistance of 107.00 ahead. Meanwhile, the 10-year US Treasury yields are still auctioning below 3.70% despite hawkish commentaries from Federal Reserve (Fed) policymakers.

New York Fed Bank President John Williams is favoring pushing the interest rates to a restrictive level solid enough to propel inflation down and holding them till CY2024. Also, Cleveland Fed Bank President Loretta Mester believes that the Fed is not near to a pause in a rate hike, as reported by Financial Times. She added that more good inflation reports and more signs of moderation are required before building an action plan of pausing rate hikes.

On an hourly scale, gold price is struggling to hold itself above the 23.6% Fibonacci retracement (plotted from November 3 low at $1,616.69 to November 15 high at $1,758.88) at $1,746.50. The precious metal has surrendered the critical support of the 200-period Exponential Moving Average (EMA) at $1,748.10, which was acting as major support earlier.

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 1741.46 at the time of writing. Pair opened at 1756.33 and is trading with a change of -0.85 % .

The pair is trading above its 20 Daily moving average @ 1720.96, above its 50 Daily moving average @ 1686.9 , above its 100 Daily moving average @ 1712.08 and below its 200 Daily moving average @ 1799.0

The previous day high was 1761.2 while the previous day low was 1746.03. The daily 38.2% Fib levels comes at 1755.41, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1751.82, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1747.84, 1739.35, 1732.67
• Pivot resistance is noted at 1763.01, 1769.69, 1778.18

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