#XAUUSD @ 1,811.72 Gold price is hovering around $1,810.00 as investors await Fed’s policy for fresh impetus. (Pivot Orderbook analysis)

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• Gold price is hovering around $1,810.00 as investors await Fed’s policy for fresh impetus.
• S&P500 soared as a consecutive decline in US inflation faded recession fears.
• The US Dollar Index (DXY) is struggling to sustain above the 104.00 resistance as odds favor a smaller Fed rate hike.

The pair currently trades last at 1811.72.

The previous day high was 1824.55 while the previous day low was 1780.06. The daily 38.2% Fib levels comes at 1807.55, expected to provide support. Similarly, the daily 61.8% fib level is at 1797.06, expected to provide support.

Gold price (XAU/USD) is juggling around the immediate support of $1,810.00 in the Tokyo session. The precious metal has corrected after printing a fresh five-month high at $1,824.51 on Tuesday. Fresh blood was infused in Gold price after the release of a soft inflation report for November month.

The US Dollar Index (DXY) is struggling to sustain above the 104.00 resistance as a slowdown in inflationary pressures has cemented expectations of a smaller rate hike by the Fed. Fed policymakers were already advocating for a deceleration in the interest rate hike pace after the soft October inflation report. Now, a consecutive significant slowdown in inflation has bolstered the chances of adopting a less-hawkish approach toward the monetary policy.

The risk-appetite theme after a decline in price pressures strengthened S&P500. Futures of the 500-US stock basket are expected to accelerate further as recession fears have faded to a greater extent. Also, the 10-year US Treasury yields have dropped to near 3.50%.

A note from Commerzbank dictates that “The 50 basis points hike, which is generally expected for tomorrow’s FOMC meeting, can be considered almost certain after today’s data.” We continue to assume that the Fed will reduce the size of the rate hikes again at the beginning of 2023, moving by only 25 bps in February and March.

On an hourly scale, Gold price has corrected to near the demand zone placed in a narrow range of $1,806-1,810. The 20-period Exponential Moving Average (EMA) at $1803.60 will act as a major cushion for Gold price. Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates that the bullish momentum is active.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1811.27 at the time of writing. Pair opened at 1810.48 and is trading with a change of 0.04 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1769.32, 50 SMA 1714.31, 100 SMA @ 1719.53 and 200 SMA @ 1790.39.

The previous day high was 1824.55 while the previous day low was 1780.06. The daily 38.2% Fib levels comes at 1807.55, expected to provide support. Similarly, the daily 61.8% fib level is at 1797.06, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1785.51, 1760.54, 1741.02
• Pivot resistance is noted at 1830.0, 1849.52, 1874.49

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